HRD Corp to write off RM21.6 million owed by 582 employers

Human Resources Development Corporation (HRD Corp) would be writing off RM21.6 million in levy areas from 582 inactive employers. stated a reply document on the findings of the Auditor – General’s Report.

A document was presented to HRD Corp’s board of directors confirmed that the write-off will begin after related due diligence process takes place.

The document highlighted that out of RM205.4 million levies outstanding,RM48 million have been collected as of June 30 and another RM50 million would be collected by the end of the year.

The Compliance Inspectorate and Enforcement Department is expected to collect RM20 million of levies and registration of 374 employers will be cancelled.

This is due to two reasons – having less than 10 employees and closed shop.

This document responded that was sighted by The Scoop responded to National Audit Department’s finding that it failed in collecting levies and the outstanding amount was affecting the government and corporation’s goal related to workforce development.

Auditor-General in its report highlighted the rise of levies annually from RM72.47 million in 2020 to RM183.87 last year.

HRD Corp however justified the increase on the grounds that new employers who registed after the expansion of Pembangunan Sumber Manusia Bhd were in the dark about the requirements for levy contributions.