KUALA LUMPUR (July 4): The Auditor General’s Report 2024 has flagged a suspicious disbursement of training grants, totalling RM51.69 million by the Human Resources Development Corp (HRD Corp).

HRD Corp paid over RM51.69 million to 3,726 individuals who attended training multiple times under the Gerak Insan Gemilang scheme, according to the report. Additionally, 234 participants in the scheme were flagged as suspicious for having identical names and identification numbers.

The report also revealed irregularities in the deposit payment process for the Menara Ikhlas property purchase, totalling RM120 million, due to non-compliance with agreement clauses despite the deposit being returned.

HRD Corp, supervised by the Ministry of Human Resources, is responsible for collecting levies from key industries and disbursing training grants to registered employers through the Human Resources Development Fund (HRDF).

As of Dec 31, 2023, HRD Corp had outstanding levies amounting to RM205.42 million, with 62 levy applications approved after the training date.

Furthermore, the report noted that RM4.81 million of the 2020 government grant remained unused and unreturned. It also reported 29 investment transactions with unrealised losses totalling RM49.38 million.

HRD Corp has been urged to comply with regulations and government grant guidelines, adhere to investment approvals within Limits of Authority, and enforce contract terms.

The Auditor General also called on the Ministry of Human Resources to take appropriate action against the HRD Corp management for the identified irregularities by referring the matter to the relevant enforcement agency.

It is noteworthy that the audit’s scope covered the years 2019 to 2023, and the current chief executive officer of HRD Corp, Datuk Shahul Dawood, has held the position since April 15, 2020.