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TI-M views with great concern the exposure of an alleged scandal involving the Human Resource Development Fund

Press Releases

PRESS STATEMENT, Kuala Lumpur – Transparency International Malaysia (TI-M) views with great concern the recent exposure of an alleged scandal involving the Human Resource Development Fund (HRDF). From media reports it is understood that the scandal is related to an irregular appointment of a training company under its Recognition of Prior Learning (RPL) programme. It was also alleged that the said company had not undergone due process and proper evaluation in accordance with internal standard operating procedure (SOP) in landing this project.

The HRDF manages about RM1 billion in mandatory employer contributions for human capital development, administered by Pembangunan Sumber Manusia Berhad (PSMB), an agency under the Ministry of Human Resources. Potentially, there is a lot of money to be claimed from PSMB by the training providers, making it very attractive for training companies to participate in the RPL scheme.

It has been reported in the media that there has been high level interference resulting in deviation from the SOP and appointment of training companies. According to media reports, this interference had led to the recent departure of the HRDF CEO whom is barely eight months into his posting.

As the matter has been reported to Malaysian Anti-Corruption Commission (MACC); TI-M strongly urges MACC to investigate regardless of whatever position anyone holds and take appropriate action without fear or favour for possible abuse of power, malpractice or non-compliance with internal SOP due to corruption.

In the name of openness and accountability, the Ministry of Human Resources must make a full disclosure of the facts of the case including the allegedly favourable treatment given to the above company. With RM1 billion to manage, the HRDF should operate in a transparent and corrupt-free environment. Tax payers’ money must not be misused or mismanaged.


Issued by :

Dato’ Akhbar Satar, President

Transparency International Malaysia Mobile: 017-256 0811

Dr KM Loi, Secretary-General

Transparency International Malaysia Mobile: 012-3036757