HRD Corp CEO on garden leave from tomorrow

 

HRD Corp CEO Shahul Hameed Shaik Dawood has been under fire after the reports by the auditor-general and PAC released this month criticised the financial management of the agency. (Instagram pic)

KUALA LUMPUR: 

Human Resource Development Corp (HRD Corp) CEO Shahul Hameed Shaik Dawood has been placed on garden leave effective tomorrow, the human resources minister confirmed today.

Scoop had reported that the chairman and members of the board had been informed of developments, while human resources minister Steven Sim responded with a simple 

yes

 when prompted by a reporter.

On July 9, two government MPs had called for HRD Corp’s top management to be suspended or put on garden leave amid allegations of mismanagement and financial irregularities at the agency.

Hassan Karim (PH-Pasir Gudang) said although the 2024 auditor-general’s report recommended that the ministry refer HRD Corp’s management to enforcement agencies, reporting the matter to the Malaysian Anti-Corruption Commission was insufficient. 

I propose the minister take immediate action by suspending or terminating the relevant management personnel, specifically the CEO, who holds dual roles in HRD Corp’s board of directors and the investment panel,

 Hassan told the Dewan Rakyat.

“It is not sufficient for the minister to just report this matter to the MACC because the alleged offences committed by HRD Corp’s management involve not only corruption but also criminal breach of trust.

“The A-G recommended that these irregularities be reported to law enforcement agencies, not just the MACC. In this context, there are two law enforcement agencies – the MACC and the police.

Therefore, the element of criminal breach of trust must be considered (by the police).

Echoing Hassan, PAC member Sim Tze Tzin (PH-Bayan Baru) also proposed that Shahul be placed on garden leave.

“It’s nothing personal, but I feel the CEO should take garden leave in line with the investigation. This is necessary as it will restore the public’s confidence and trust in HRD Corp.

This must be done so that the investigation can proceed. If the top management or CEO are found not to be at fault, they can return, but for now, it’s best to let the enforcement agencies carry out their duties,

 he told the Dewan Rakyat.

Earlier, MACC officers had visited HRD Corp’s head office and the human resources ministry to seize documents related to investigations, which were launched after the reports by the A-G and Public Accounts Committee were released on July 4.

The A-G’s report revealed issues such as a questionable RM120 million property deal and poor governance in HRD Corp’s investments of RM3.73 billion, which resulted in unrealised losses of RM49.38 million from 29 investment transactions.

Among the other revelations in the A-G’s report were that more than RM50 million in training grants were disbursed to the same person multiple times and that HRD Corp’s investment panel failed to report substantial investment activities to its board of directors.

In the report, auditor-general Wan Suraya Wan Radzi described HRD Corp’s corporate governance as unsatisfactory, adding that its management decisions did not follow procedures and did not protect its interests in achieving its objectives.

A separate report by the PAC also revealed that the company’s investment panel had not reported its activities to its board of directors, with the levies collected used for high-risk investments.

On July 5, the ministry’s secretary-general, Khairul Dzaimee Daud, said there was no need for any HRD Corp officers to be suspended because the MACC was conducting an investigation.

In a Bernama report, he said suspensions would only be carried out if the ministry launched an internal investigation into the matter. - FMT