‘Unused monies in pool fund’

PETALING JAYA: The Human Resource Development (HRDF) is in a pickle.
First it said that unused monies from the 1Malaysia Globally Recognised Industry and Professional Certification (1MalaysiaGRIP) would be channelled to the Consolidated Fund. But in an about-turn, HRDF now claims that the entire unused sum of about RM71 million, has been put into the HRDF Pool fund.
This pool fund, according to HRDF, will be used to fund five other training programmes, including one for retrenched workers and for future workers, which it claims will benefit "approximately 36 associations in Malaysia".
To aggravate the already pent-up anger among employers, it has subsequently claimed that all funds for the programme have been fully utilised.
In an earlier circular dated Dec 22 last year in which HRDF chief executive C. M. Vignaesvaran said that as of Dec 31, RM86.3 million was taken from employers' contributions and allocated for the 1MalaysiaGRIP programme.
Until last month, the sum had exceeded RM100 million in contributions from employers with an additional RM100 million from the government, HRDF said in its latest circular.
Vignaesvaran had said that only RM15.2 million was utilised to upgrade the skills of 19,000 workers, leaving about RM71 million, which he said would be put into a consolidated fund.
The programme was ordered to be wound down by the government in September after protests from employers who claimed that their contributions were being misused.
The latest circular states that "due to the full utilisation of the fund for 1MalaysiaGrip, the programme is currently phased out."
Employers are now demanding that HRDF account for the money instead of saying that full utilisation has resulted in no funds.
They say this would be impossible because only 19,000 workers were trained under this programme as of August costing only RM15 million.
"How could it use up RM185 million in two months? Using their own numbers, it would mean that they upgraded the skill or trained more than 200,000 workers.
Who are they?" asked the HR manager of a multi-national who asked not to be named.
However, to the Malaysian Employers Federation (MEF), HRDF had stated earlier that the un-utilised funds allotted for 1MalaysiaGRIP will be re-credited to the employers individual accounts.
HRDF in a statement yesterday in response to queries from theSun claimed it had notified employers about the phasing out of the 1MalaysiaGRIP programme and that the remaining funds will be channelled into a pool fund, instead of re-crediting it to employers individual accounts.
However, it did not address the usage of RM100 million of the unused funds and RM100 million from the government.
"If now HRDF claims that the fund has been fully utilised, it warrants for an audit by an independent auditor, to determine whether the 30% fund of 1MalaysiaGRIP had really been fully utilised", MEF executive director Datuk Shamsuddin Bardan said.
Employers, he said, were not happy with the implementation of the program as it deprived them of 30% of their contribution, leaving them only with 70% to carry out trainings which they deem necessary for their employees.
What has further got the ire of employers is that the same circular states the funds for 1MalaysiaGRIP could be utilised by even non-contributing employers.
"First you said the money has been utilised, then you say that non-contributors can use the funds. It does not make sense," said another HR manager.