HRDF to rent out Bangsar South property

This follows the recommendations made by the fund’s Governance Oversight Committee

by MARK RAO / pic by TMR FILE

THE Human Resources Development Fund (HRDF) is expected to reap millions in rental yield from its Bangsar South property, following the recommendations made by the fund’s Governance Oversight Committee.

Human Resource Minister M Kulasegaran (picture) said the property, which has been vacant and idle since it was acquired by HRDF in 2017, is now attracting tenants that would ensure a steady income for the fund.

“(The property) was not let out. It was an empty space with six floors. Now, we have started to put in tenants. We hope at full tenancy, it will bring in millions of ringgit to HRDF,” Kulasegaran said. HRDF’s RM154 million purchase of part of a high-rise building in Bangsar South came under scrutiny when allegations surfaced that it was done without the knowledge of the board of directors and investment panel.

The revelation came after the board and panel approved another property acquisition in the same area, only for HRDF to purchase the aforementioned property with RM40 million paid prior to the tax invoice date.

It was reported that the investment panel was only aware of the decision five months after the first tranche of RM15.4 million was paid towards the property.

The six floors of the Bangsar South property were fully handed over to HRDF in March 2017.

As of May last year, the government-linked company (GLC) reportedly started paying RM66,670 per month in service charges, while only one floor was rented out at RM115,168 a month.

Kulasegaran said the Governance Oversight Committee was formed to address governance issues in the statutory body, following arrests of several officers and allegations of corruption and misuse of funds.

“We are now taking the recommendations made by the Governance Oversight Committee to rectify the wrongdoings that have taken place in this GLC,” he said in a press conference earlier this week. Since coming into office on May 21 last year, Kulasegaran sought to restore integrity in the GLC by redressing past misdeeds carried out by the former administration.

The independent committee comprises former Ministry of International Trade and Industry secretary general Tan Sri Dr Rebecca Fatima Sta Maria, former E&Y Malaysia director Fiona Soh, lawyer Fahri Azzat, accountant S Dhamodaran and journalist R Nadeswaran.