KUALA LUMPUR – The Human Resources Ministry has launched an internal investigation into the Human Resource Development Corp’s (HRD Corp) Skills Passport initiative amid revelations that the contract, awarded to a company with 50% foreign ownership, did not receive the necessary board approval or go through the required procurement and approval process.
A team of seven ministry officials tasked with investigating the matter, which was first reported by The Vibes on Sunday, visited the corporation’s office in Damansara today.
It is learnt they are going through documents including contracts and minutes of board meetings as well as interviewing senior officials to unearth any discrepancies in the awarding of the contract which could set the HRD Corp back by up to RM159 million annually.
“The visit was stemmed from the letter of the Finance Ministry (MoF) representative on the board which called into question the transparency and compliance of the procurement and approval process for the Skills Passport programme,” said a source.
He added that the investigators have been given three days to do their work before presenting their findings to a panel headed by ministry secretary-general Datuk Seri Zaini Ujang.
Zaini was appointed on April 18 following another scandal at the ministry involving officers and aides to minister V. Sivakumar. A foreign workers recruitment scandal saw his private secretary and a senior aide detained by the Malaysian Anti-Corruption Commission (MACC).
They have since been terminated.
Sivakumar, who was also questioned by the MACC, confirmed the sackings today. However, the minister himself retains his position.
Yesterday, Datuk Rosli Yaakub, who is the deputy secretary for governance and monitoring under the MoF’s government investment companies division, confirmed to The Vibes that he had written the letter dated April 10 to HRD Corp chairman Datuk R. Rajasekharan and chief executive Datuk Shahul Hameed Dawood to convey his concerns on the way the contract was granted – without board approval.
Rosli said he stood by his letter and its contents, which, among others, calls out Shahul for allegedly misleading the board and committing the HRD Corp to paying the RM12 fee for every use of Skills Passport.
At 4.4 million workers, Rosli said the financial commitment for HRD Corp could be to the tune of up to RM159.47 million a year.
He also noted that the company chosen to implement the Skills Passport initiative, Neomindz Sdn Bhd, has a weak financial position with RM300,000 capital, RM36,355 cash reserves, and current liabilities valued at RM144,400.
It is also 50% owned by an Indian national which raises security and privacy issues concerning workers’ data. – The Vibes, May 9, 2023
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