PTPTN 2009 loans – a JOKE or a SCANDAL ??

Posted on October 26, 2010


The Auditor General’s 2009 report released yesterday showed government spending and control has improve over the previous years. There were still cases of questionable expenses, unusually high costs of purchase, etc . I am very sure the opposition will have a field day raising it. Non – government aligned news media, NGO’s  and bloggers will be busy talking about it. I will be spending time studying the reports too. However immediately , I was particularly IMPRESSED with PTPTN loans situation.

Imagine PTPTN literally giving out loans or should I say FREE money  ( RM 23.78 million )  to 16,013 students who DID NOT apply for it !! Is this a JOKE or a SCANDAL ??? I do not understand. Some one please explain this to my aging and dying brain cells . If there is NO application from the students, how the heck did PTPTN –  ??

– identify who need the loans when they did not apply for it . We are looking at  sixteen thousand students here not sixteen

– bypass all the approval procedures to release the money to the students

My only conclusion leads me to a unusual ” scandal ” here . Based on the statements released by PTPTN about the loan process, the situation is even more ridiculous . It just gives me the impression there is either very poor control or no control. The PTPTN Director General MUST investigate and explain this ridiculous situation.  Another classic case of ” Malaysia APA APA  pun BOLEH ???

The report from The Star :

THE National Higher Education Fund Corporation (PTPTN), which is projected to face a whopping cash flow deficit of RM46bil, mysteriously approved loans totalling RM23.78mil to 16,013 students who did not apply for the facility.

Further checks also showed these students had not signed any agreement to return the loan advances, said the Auditor-General’s 2009 Report which was presented in Parliament yesterday.

“PTPTN may experience a deficit of RM45.89bil until the 11th Ma laysia Plan.”
According to the report, a total of RM864.54mil was awarded to 559,735 students who qualified to receive the loan advance up to December last year.

“The method used to award loan advances does not protect the interests of PTPTN,” it said, noting that PTPTN needs to review its method of advancing loans.
Even though 227,595 loan agreements were received in 2008 and 2009, a whopping 82% of them have yet to be signed by PTPTN, making it difficult to act against the 187,540 who refuse to repay their loans, said the report.

The report also found that loan agreements were not properly kept in the Agreement Unit: they were stacked up to the ceiling – a photograph in the report showed piles of documents covered by a cloth because of a leak in the ceiling.
PTPTN was also found to be late by between two and 32 months in issuing repayment notices.

In its reply, PTPTN said it was in the process of developing an alert system to issue notices and letters of demand to borrowers.

PTPTN added that no agreements were used in the granting of loan advances but the recipients were required to sign a letter to show that they agreed to receive the money.
“This document can be used when taking legal action as it contains all the terms and conditions when cashing out the loan advance warrant,” said PTPTN.

As for the loan agreements yet to be signed by PTPTN, it said immediate action would be taken by upgrading its computer system and increasing its staff so that the documents can be processed within three to four months.