KUALA LUMPUR – The Finance Ministry’s (MoF) representative on the board of the Human Resource Development Corp (HRD Corp) has confirmed that he had raised queries and concerns concerning a proposal to introduce a skills programme due to lack of clarity on governance and transparency.
Datuk Rosli Yaakub said he wrote the letter dated April 10 and stood by its contents.
“Yes I wrote the letter and can confirm the contents,” Rosli told The Vibes when contacted yesterday.
Rosli is deputy secretary for governance and monitoring under MoF’s government investment companies division.
“I am the representative of the Ministry of Finance in HRD Corp and am carrying out my duties as a member of the board (of HRD Corp),” said Rosli briefly, who is currently overseas.
The six-page letter is addressed to HRD Corp chairman Datuk R. Rajasekharan and chief executive Datuk Shahul Hameed Dawood.
In the letter headed “Non-compliance with Procurement Procedures in the Skills Passport project” Rosli articulates his concerns that the project – a skills database cum search engine – was being pushed through without the board’s approval.
It starts with Rosli stating the current Malaysia Madani concept introduced by Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister, which emphasises transparency, accountability, and good governance.
“This was again stressed by the Finance Minister at the recent post-cabinet meeting on April 5,” he wrote.
Among Rosli’s remarks in the letter were:
1. “What was reported in the meeting minutes as a PROPOSAL TO APPROVE SKILLS PASSPORT is inaccurate because it was never presented to the board.
“It is merely a Chief Executive’s update and not a presentation in the form of a working paper seeking a decision from the board.”
2. “I do not agree with the meeting minutes which state ‘The Board Approved to partner with Neomindz Sdn Bhd on the implementation of Skills Passport’ because no working paper was presented to the board to request their decision.
“Thus, I do not agree with what was written in the meeting minutes dated October 6, 2022.”
3. “It has been found that the implementation and procurement process for the Skills Passport project is unorganised.”
4. “The Chief Executive wrote a letter to MoHR’s (the Human Resources Ministry) Deputy Chief Secretary (Operations) on February 15 to seek approval for the project and approval was obtained the following day resulting in a contract between HRD Corp and Neomindz Sdn Bhd on February 17.”
5. “The Chief Executive via the letter has induced the Deputy Chief Secretary (Operations) to sign off his approval for the project when, as a member of the board, he knows that the Deputy Chief Secretary (Operations) has no power to approve the project.”
6. “Searches via Companies Commission revealed that Neomindz Sdn Bhd has a weak financial position with RM300,000 capital, RM36,355 cash reserves, and current liabilities valued at RM144,400.”
7. “The company lacks experience as it was only established on December 5, 2019 and 50% of its shares are owned by Indian national Jayamohan Parameswaran Madhusoodhenen Nair.
“This presents a risk to HRD Corp as it could divulge data and confidential profiles of workers in Malaysia to a foreign entity.”
8. “During the board meeting on March 28, the Chief Executive misled the board by stating that the project would not result in any costs for HRD Corp.”
“However, in a letter dated February 15, 2023 the Chief Executive informed the Ministry of Human Resources’ Deputy Chief Secretary that HRD Corp will pay Neomindz RM12 for every use of the Skills Passport.”
9. “I would like to propose to the Chairman and all board members that the implementation of the Skills Passport programme should be terminated given that the implementation failed to comply with the principles of transparency and accountability in the administration of procurements and would result in major financial and legal implications for HRD Corp.”
Rosli opined that the financial implications to HRD Corp could be in the region of up to RM159.47 million annually based on the database of 4.4 million workers.
In its response to The Vibes article, HRD Corp threatened legal action, stating that the issues raised were answered and resolved.
However Rosli’s concerns are yet to be addressed despite assurances at the last board meeting on April 12 that they would be.
HRD Corp also invoked the Official Secrets Act (OSA) 1972, stating that Rosli’s letter was protected under the OSA, hence it was “not meant for public consumption or media publication”. – The Vibes, May 8, 2023
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