30% contribution by employers to HRDF to stop from 15 November 2018
Human Resources Minister M. Kulasegaran has announced that the 30% contribution by employers to the Human Resources Development Fund (HRDF) will be discontinued effective 15 November 2018. He said that the final contribution was for the month of October 2018, and that the balance of funds would go towards human capital initiatives to be announced to employees later.
Regarding the alleged misappropriation of RM300mil from the fund, he said millions of Ringgit were used to buy property without authorisation from the HRDF board, and that was just some of the wrongdoings. The Minister has initiated a five-member independent Governance Oversight Committee to review and probe the allegations. ”Some training providers and certain HRDF management personnel misused the fund in the name of training. ”Large sums of money were diverted without the authority of the HRDF Board for less impactful training programmes. ”High salaries and bonuses were paid to selective management staff without the approval of the HRDF board,” he said at a townhall meeting with representatives of employer associations and HRDF registered employers in Kuala Lumpur yesterday.