In a bind over ‘ funds’
> Employers upset over HRDF runaround on balance of money for staff training
PETALING JAYA: The Human Resource Development Fund (HRDF) is in a pickle.
First, it said that unused monies from the 1Malaysia Globally Recognised Industry and Professional Certification (1MalaysiaGRIP) would be channelled into a consolidated fund.
But in an about-turn, HRDF now claims that the entire unused sum of about RM71 million has been put into a HRDF pool fund.
The pool fund, according to HRDF, will be used for five other training programmes, 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, HRDF chief executive C.M. Vignaesvaran said 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 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 ceased by the government in September after protests from employers, who claimed that their contributions were being misused.
Employers are now demanding that HRDF account for the money instead of saying that full utilisation has resulted in no remaining funds.
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 returning it to employers’ individual accounts.