KUALA LUMPUR: The Human Resource Development Corporation (HRD Corp) recorded unrealised net investment profits of RM69 million as of December last year.

This sum represents 98.7 per cent of HRD Corp's total investment portfolio, valued at RM3.6 billion.

This figure was disclosed during a management presentation to the HRD Corp board and subsequently reported by various media outlets.

It was also revealed that only 1.3 per cent of the portfolio incurred an unrealised loss of RM49 million.

"Realised profits from investments amounted to RM56 million as of June 30, last year, and RM106 million by December 31 last year," the presentation stated.

It further clarified that HRD Corp management adhered to established procedures, requiring all investment approval applications to be supported by analytical papers.

Previously, the Auditor General's report (2/2024) highlighted audit failures within HRD Corp, suggesting management should be referred to relevant enforcement agencies.

Auditor General Datuk Wan Suraya Wan Mohd Radzi pointed out deviations from procedures and decisions that did not advance the company's objectives.

She urged the Human Resources Ministry to take appropriate action against HRD Corp management for these irregularities.

Additionally, the Public Accounts Committee (PAC) revealed that HRD Corp utilised RM3.77 billion collected from employer levies for various investments.

This was detailed in a presentation slide from March 12, 2024, included in the PAC report on HRD Corp's Training Fund Management and Effectiveness under the Human Resources Ministry.

The PAC report also noted that HRD Corp's investment panel failed to report investment activities to the Board of Directors as required, citing a conflict of interest where the investment panel chairman also served as the Board's chairman.

In response to these revelations, Human Resources Minister Steven Sim instructed Khairul Dzaimee and the CEO of HRD Corp to report to the Malaysian Anti-Corruption Commission (MACC).

The MACC confirmed it would scrutinise all documents related to HRD Corp's management issues to investigate potential corruption, misconduct, or abuse of power.

https://www.nst.com.my/news/nation/2024/07/1073419/over-98-cent-hrd-corps-investments-are-profitable