Corporation should also shoulder the blame

I REFER to Prime Minister Tun Dr Mahathir Mohamad’s remarks on PTPTN loan defaulters, “Dr M: Shame on all you defaulters” ( The Star, Sept 21).

While I agree that shame should be cast upon all defaulters for the unpaid amount of RM36bil, the same should be done upon the managers of the National Higher Education Fund Corporation (PTPTN).

It’s appalling and shocking that recovery of loans has been so poorly managed that the amount has swollen to such an unbelievable level and plunged the agency into the doldrums.

What actions were taken by the corporation and ministry involved to recover the debts? Were the terms of the loan agreement enforced/ exercised for the recovery? How many defaulters have been taken to court thus far?

Yes, it is utterly shameful and warrants the authorities to come down hard on the defaulters and the corporation too, if proven to be complacent and/or negligent. A complete and thorough investigation and revamp/overhaul of the PTPTN management and system is urgently required to expeditiously initiate effective recovery of the gargantuan amount owed.

Among the immediate actions that may be taken into consideration are:

1. Get all the recipients still in default to come forward and update their personal details within three months;

2. Set a fresh settlement quantum and time frame based on the defaulters’ updated information and new agreement thereof;

3. Impose an automatic debit system from the defaulter’s bank account;

4. Impose a surcharge on any current default; and

5. Initiate legal action for any subsequent default exceeding three months.

For new loan applicants, PTPTN may impose the requirement to furnish at least one or two guarantors or appropriate collateral commensurate with the value of the loan as a requisite.

Alternatively, the government may divest to such banks as Bank Simpanan Nasional or Agrobank the provision of loans while PTPTN focuses on the current debt recovery and eventually be dissolved.

As a tax-paying citizen, I regret the shameful state of our financial management and lack of responsibility and accountability across government agencies.

Lastly, with a little bit of honesty, I trust some decision to resolve the lot of these shameful defaulters will soon prevail with Dr Mahathir at the helm. RM36bil is a lot of money which other young deserving citizens desperately and genuinely need to move forward. S. CHANDRA Alor Gajah