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PETALING JAYA: A recent report by the Public Accounts Committee (PAC) on the Human Resources Development Corporation (HRD Corp) has noted discrepancies in the testimonies of two senior officers about the use of an event management company formerly owned by its CEO.

The company in question, My Events, was owned by HRD Corp’s CEO, Shahul Hamid Shaik Dawood, prior to him taking office in April 2020.

The report noted that on Jan 18 this year, CFO Farizul Yahaya told the committee that HRD Corp engages event management companies to run some of its internal programmes.

Responding to a question by Sim Tze Tzin (PH-Bayan Baru), Farizul said that My Events was one of those companies.

In his testimony, however, Shahul, denied that My Events was directly involved in organising HRD programmes, stating that this was to avoid a conflict of interest as he was formerly the company’s owner.

Responding to Sim, Shahul said:

“I know where YB is coming from. I was the owner of My Events before I came to HRD Corp. I’ll never make that kind of costly mistake. (It’s) suicide, asking My Events to do jobs for HRD Corp.”

He said My Events has never done a single event for HRD Corp.

“If somebody can prove that My Events has done a job for HRD Corp, I’ll leave HRD Corp in 24 hours. All this fitnah has to be supported by facts and figures.

“We have corporate ethics and we are all trained… in terms of corporate governance and integrity. My Events has never done a single event for HRD Corp during my tenure. HRD Corp has not given (My Events) even one dollar.”

Asked by Sim if My Events had ever worked as a “sub, sub-contractor” for HRD Corp, Shahul replied that “major contractors” are familiar with him as he has 15 years of experience in the event management industry.

Shahul said that upon his appointment as HRD Corp’s CEO, he stressed the need to “never allow” event management companies to organise events for HRD Corp in a bid to cut costs.

He said that between 70% and 80% of the events in HRD Corp are run by its own staff, with third parties called in only when equipment is required.

“That is all done (according to) the procurement procedures under the CFO’s office. (It has) nothing to do with us, sir. Thank you,” he said.

PAC would go on to note that there were discrepancies in the testimony given by Shahul and Farizul regarding the involvement of My Events in managing HRD Corp events.

HRD Corp is responsible for driving Malaysia’s talent development through the collection of levies from employers to fund training and development programmes for the Malaysian workforce.

In its report released last Thursday, PAC found that HRD Corp’s investment panel did not report its investment activities to its board of directors, leading to a lack of oversight and funds being “aggressively” used for high-risk investments.

PAC chairman Mas Ermieyati Samsudin also revealed that no BNM representative has sat on HRD Corp’s investment panel since 2017, in violation of the Human Resources Development (HRD) Act 2001.

The PAC chief said there were also purchases of land that went through various procurement procedures rather than one consistent SOP, with the board of directors also not receiving complete documentation for several real estate transactions.

The Malaysian Anti-Corruption Commission is investigating several issues outlined in the 2024 auditor-general’s report, which recommended that the human resources ministry refer HRD Corp’s management to the enforcement agencies after the company failed its audit.

The report, which was also released last Thursday, said the actions and decisions by HRD Corp’s management did not comply with procedures and failed to protect the company’s interests.