Friday , 28 November 2014

PTPTN Bankrupt?

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The National Higher Education Fund Corporation or Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) is now suffering from a large number of non-performing loans (NPL) with billions of Ringgit of uncollected education loans.

What happened to PTPTN? Why is PTPTN being managed so badly to an extend that the funds loaned to these borrowing students are being left uncollected? Now, even the majority of these so-called borrowers has by now gone missing, untraceable or just vanished like that.

Can the management team of PTPTN explain all these problems in detail? Whatever the CEO of PTPN Agos Cholan is trying to explain, “doing it in a nice way” is totally unacceptable and unbecoming for a person from the management level. This word of his is totally a lame excuse aimed to cover up the various weaknesses within the organization.

With the bad debts currently at its edge, the CEO should actually take responsibility and resign from his post immediately in order to pave way for an organizational revamp to improve the situation. But instead, the CEO kept on giving lame excuses with no concrete solutions.

Come on, those money given out as loans are from the public coffer. That means, it also involve public interest at large.

It proves that there are vast inefficiencies within the PTPTN organization and its structures which had eventually led to its bad debts. NPL accounts were not properly monitored nor well-taken care of in order to prevent defaults from prolonging. Besides, PTPTN should also ensure that these borrowers remain traceable and contactable for collection and subsequent follow-ups but all these efforts are not being carried out.

And now that all these default borrowers (students) are all either missing, refused to repay, cannot effort to repay or whatsoever, how is the PTPTN going to initiate efforts to collect back the loans? Where are their contingency plan to address this issue which is seem to be getting more complicated?

If PTPTN really goes bankrupt because of all these, then the BN government ought to explain!

By Viktor Wong is a Social and Political Analyst, Director of Inter-Research And Studies (IRAS) and regularly writes political and current affairs commentaries for an online news portal. Asides, he also frequently blogs on political reforms, current affairs, education, race relations and giving various commentaries on news highlights.

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