PTPTN under PAC microscope

Problems with the National Higher Education Fund (PTPTN) today became the first of the nine serious concerns raised in the Auditor-General's Report that are to be scrutinised by the Public Accounts Committee (PAC)."We are looking at the hows and whys of the fund still being defective after 13 years, especially in collection and the tracing of information. What we see is that the fund is unable to sustain itself. Expenditure is in excess of income," PAC chairman Azmi Khalid said.
Azmi , who is also Padang Besar parliamentarian, said the committee today called Higher Education Ministry secretary-general Zulkifli A Hassan and the acting CEO of PTPTN to testify.Also in attendance was representatives from the Government Housing Loan Department because they are jointly using the system of collection introduced by PTPTN."Why we called them is for whatever that is reported in the audit report and while doing so we are looking at other areas and we will make our conclusion after meeting a few other agencies."He said, that other parties that will be called to testify includes the Finance Ministry.

Poser over dodgy company

A member of committee who requested anonymity said that the Finance Ministry will be quizzed on Prokhas Sdn Bhd, a company wholly owned by the ministry, which was appointed to administer the PTPTN database system."The decision to award the contract to Prokhas is peculiar. The company does not have any experience in the field. It was totally outsourced to an Indian firm where it became problematic," said the source.
The source added that the project which was stalled twice was 'mysteriously' continued despite the problems. He added that the matter was blamed on the former Prokhas chief executive officer, who may be called up to explain the issue.The National Higher Education Fund Corporation, which provides loans to needy students for higher education at low interest rates, has trapped itself in a RM46 billion deficit, with the major contributing factor being defaulters.

The audit report also showed that RM23 million in loans was disbursed in 2009 to 16,013 students who did not apply for it.Further, more than half of the 103,525 forms received in 2008 and all the 124,070 forms received in 2009 had not even been processed!Azmi said next on the chopping block would be the Education Ministry and its food supplement programme.The audit report also reveals that underprivileged students listed under the the food supplement programme (RMT) of the Education Ministry were provided with two slices of white bread with margarine, instead of the sardine sandwiches they were promised.

Source : http://www.malaysiakini.com/news/147734