What Happened to the RM3.77 Billion Levy Collection? Who Among the 10 HRD Corp Employees Has Been Charged?
KUALA LUMPUR: The issue of mismanagement and misappropriation of funds involving the Human Resource Development Corporation (HRD Corp) continues to garner attention after several revelations involving corruption, abuse of power, and procedural violations. Recent reports highlight significant weaknesses in governance and raise serious questions about the use of public funds.
Auditor-General’s Report Reveals Procedural Flaws
According to the Auditor-General’s Report Series 2/2024, HRD Corp management made decisions that did not comply with established procedures. The Public Accounts Committee (PAC) also revealed that RM3.77 billion in levy collections from employers was diverted into investment activities that did not align with the agency’s primary objective—human resource development.
Deputy Director Arrested for RM600,000 Bribery
On January 25, 2025, the Malaysian Anti-Corruption Commission (MACC) in Negeri Sembilan detained a deputy director of a government agency and another individual suspected of soliciting and receiving RM600,000 in bribes. The money was allegedly transferred to an account belonging to a consulting firm acting as an intermediary between 2019 and 2024.
A six-day remand order was issued by Magistrate Syed Farid Syed Ali to facilitate further investigation. Negeri Sembilan MACC Director Awgkok Ahmad Taufik Putra Awg Ismail confirmed that the case is being investigated under Section 17(a) of the MACC Act 2009.
MACC Investigation into HRD Corp
In July 2024, the MACC recorded statements from 10 individuals, including HRD Corp staff and officials from the Ministry of Human Resources (KESUMA). Investigators also seized critical documents from HRD Corp’s Kuala Lumpur office and KESUMA’s office in Putrajaya.
MACC Senior Director of Investigations, Datuk Seri Hishamuddin Hashim, stated that the investigation focuses on issues of corruption, abuse of power, and procedural violations under the MACC Act 2009.
What Happened to the RM3.77 Billion?
The PAC disclosed that the levy funds collected from employers, which were supposed to be used for HRD Corp’s training programs, were instead diverted into unrelated investment activities. This revelation raises significant concerns about transparency and accountability in fund management.
These large-scale misappropriations, meant to benefit employers and employees, have instead eroded public trust in government agencies.
Call for Transparency and Comprehensive Reform
This case underscores the urgent need for comprehensive reforms in HRD Corp. Many are calling for drastic measures to improve fund management systems, prevent abuse of power, and ensure transparency within government agencies.
The public is now awaiting further updates on the MACC investigation and the steps authorities will take to bring those involved to justice.
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