KUCHING: Sarawak Business Federation (SBF) has appealed to the government and the relevant authorities to conduct a thorough investigation into the allegations of mismanagement and misconduct in Human Resource Development Fund (HRDF).
According to SBF secretary-general Jonathan Chai, SBF has agreed with the views and proposals of Malaysian Employers Federation (MEF) to halt the mandatory monthly contribution from employers and employees for training and development in view of the alleged mismanagement and misconduct in HRDF.
“To clear any doubts regarding the alleged mishandling of funds and to uphold the transparency and accountability of the operation of HRDF, SBF appeals to the government and the relevant authorities to conduct a thorough investigation into the allegations as reported in the media recently,” he said in a media statement yesterday.
A local daily recently reported the alleged abuse of power and mismanagement of funds in HRDF over its purchase of a property in Bangsar South four years ago, purportedly done without the knowledge of its board members and investment panel.
HRDF, an agency under the Ministry of Human Resources, reportedly spent RM154 million, inclusive of goods and services tax (GST), on the property. HRDF allegedly spent about RM40 million even before the issuance of the tax invoice.
According to MEF executive director Datuk Shamsuddin Bardan, workers training and development would be more efficient if it was handled by the employers and not HRDF.
“To ensure that money is put to good use, the government could ask all employers to show proof, or the Ministry of Human Resources could even conduct a random audit that at least one percent of employers/workers’ annual contribution had been properly utilised for training.
“The contribution to HRDF should be totally utilised for training of employees, but the fund is now alleged to have been used to purchase building.
“The allegations if proved correct would imply that HRDF has deviated and derailed from its original objectives of spearheading the training of workers and the development of human resources in this country,” said Shamsuddin.
