KUALA LUMPUR (July 18): A group of government backbenchers have urged the Human Resources Ministry to ensure that the upcoming independent audit of Human Resource Development Corp Bhd (HRD Corp) is aimed at enhancing governance processes, rather than reviewing the National Audit Department (NAD) report.

During a news conference on Thursday, PKR lawmakers Hassan Abdul Karim (Pasir Gudang), William Leong (Selayang), Wong Chen (Subang) and Chiew Choon Man (Miri) expressed their concerns over the ministry's decision to appoint an independent audit firm.

"We urge the ministry to clarify that the independent auditor's role is not to provide a second opinion on the findings of the NAD report, but purely to propose improvements to processes, documentation, and procedures for better governance," said Leong.

On July 10, Human Resources Minister Steven Sim announced the appointment of a third-party auditor to ensure transparency in the independent audit of HRD Corp, following the release of the NAD and Public Accounts Committee (PAC) reports on the agency's operations from 2019 to 2023.

The agency came under scrutiny after the NAD and PAC highlighted unusual transactions, including suspicious disbursements, dubious property deals, and risky investments.

Earlier, HRD Corp's former chief operating officer, Ariff Farhan Doss, cautioned that appointing an external auditor to undertake HRD Corp's independent audit could set a "dangerous precedent".

He argued that such a move could cast doubt on the NAD and the PAC and restrict their functions.

The four MPs also raised alarm about reports suggesting that government agencies need not accept or agree with the NAD's findings and could seek third-party opinions independently.

They warned that this could lead to other ministries and agencies questioning the NAD's reports and undermine the credibility of the auditor general.

"There are news reports questioning the auditor general's impartiality, claiming that agencies actually make profits rather than losses. But the issue is not profitability but the justification for risky investments," said Wong.

Wong stressed the need for clarification from the ministry and urged it to stop any news leaks purportedly undermining the NAD's credibility, from HRD Corp.

Meanwhile, the four MPs confirmed they met with Ariff earlier in the day and acknowledged management weaknesses highlighted by the NAD and PAC, including issues with the Human Resources Development Corp Act that concentrate power in the minister and the CEO of HRD Corp.

Wong highlighted the CEO's unilateral authority in investment decisions as a significant concern.

"HRD Corp should focus on its core mandate of enhancing workers' skills with levies collected from employers, rather than functioning as an investment entity," he said.

The MPs stated their intention to bring these concerns to Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said and announced plans to issue a detailed statement on the need for amending the act soon. 

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