HRDF, 2 others sued over alleged training course conspiracy

Two certified training providers have hauled the Human Resources Development Fund (HRDF) and two others over a purported conspiracy linked to 26 training programmes.

Filed on June 22, the writ of summons by plaintiffs Egraduate Net Sdn Bhd and Gangsa Abadi Sdn Bhd named HRDF, company Smart Trends International Sdn Bhd and businessperson Emmanuel Benson as the first, second and third defendants respectively.

According to the statement of claim sighted by Malaysiakini, a director of Egraduate and Gangsa Abadi had purportedly stumbled on documents that allegedly showed Benson abetted two HRDF officers to transfer 26 training programmes - that were supposed to be conducted by the two plaintiffs - to Smart Trends International.

The two plaintiffs claimed that they found out that the transfers were conducted when Benson used to be a director of Egraduate and Gangsa Abadi, with them further claiming they found out that the businessperson had an interest in Smart Trends International.

Egraduate claimed that three of these programmes - Professional Diploma in Scaffolding Planning, Design and Fabrication for Oil and Gas Industry; Professional Diploma in Petroleum Industry Management Oil & Gas Technology; and Professional Diploma in Scaffolding - saw HRDF paying RM26,410,759.22 to Smart Trends International for the company to conduct them between June 3, 2016 and Jan 24, 2018.

Incur losses

Egraduate and Gangsa Abadi claimed that the three defendants conspired to cause the transfer of the programmes from the two plaintiffs to Smart Trends International, thus causing the plaintiffs to incur losses on profits.

The two plaintiffs claimed that Benson stepped down as their directors, with the court documents stating that he stepped down as Graduate.Net director on Aug 11, 2017.

The two plaintiffs also made reference to an early 2020 suit filed by HRDF against Smart Trends International, Benson and two others over alleged fraud involving the same three programmes that are worth over RM26 million (however, this civil action was withdrawn by HRDF later that same year).

Through the present civil action, Egraduate and Gangsa Abadi are seeking several reliefs, among them for HRDF and the two other defendants to pay the two plaintiffs every profit obtained from conducting the training programmes.

On July 11, the three defendants entered appearance in the matter, meaning they intend to respond to the lawsuit.

HRDF filed its memorandum of appearance via law firm Lewis & Co, while Smart Trends International and Benson entered appearance via law firm SN Nair & Partners.

Egraduate and Gangsa Abadi are represented by lawyers from Shukor Baljit & Partners. - Mkini