Tuesday October 26, 2010
PTPTN okayed RM23mil worth of loans to students who didnt apply
Compiled by TEH ENG HOCK, YUEN MEI KENG and SHAUN HO
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-Generals 2009 Report which was presented in Parliament yesterday.
PTPTN may experience a deficit of RM45.89bil until the 11th Malaysia 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.