Audit Report Highlights Concerns on Education Loan Repayment and Research Fund Management
The National Higher Education Fund Corporation (PTPTN) needs to review its education loan repayment collection mechanism and increase monitoring of the agency’s education loan management, according to the Auditor-General’s Report (LKAN) 1/2025.
Education Loan Repayment Issues
As of December 31, 2023, the total amount of education loan repayments in arrears stood at RM10.853 billion, involving 1.20 million borrowers. Overdue education loan repayments also showed an increase from 2019 to 2023. This highlights the need for PTPTN to improve its loan repayment collection mechanism and monitoring to ensure timely payments.
Fundamental Research Fund Management
The report also highlighted concerns over the management of the Fundamental Research Fund (DPF) by five Research Universities. The audit found that the progress of the DPF research project is at a less than satisfactory level, with only 11.3% of projects implemented at a good level and 7.3% categorized as problematic. The auditor emphasized the need for periodical monitoring to ensure projects are carried out according to plan and achieve the set Key Performance Indicator (KPI).
Solid Waste Management and Public Cleaning Corporation
The report also touched on the financial position of the Solid Waste Management and Public Cleaning Corporation (SWCorp) as of December 31, 2023. The auditor noted that SWCorp’s ability to cover operational costs and financial commitments in the future depends on additional financial assistance from the Federal government.
Main Focus of the Audit
The audit report identified three focus issues, including the problems of PTPTN, DPF, and SWCorp, in addition to the issue of Financial Statement Verification and Financial Statement Analysis.
Recommendations for Improvement
The Auditor-General submitted 10 recommendations for improvements to federal agencies, including:
- Proactive actions to improve the agency’s internal control and financial system in line with the requirements of the accounting standards adopted to ensure accurate financial reporting and effective financial governance management.
- Review of the direction and business plan of the subsidiary company that suffered losses and did not provide proper returns.
- Closing down subsidiary companies with dormant or inactive status for more than five years.
Conclusion
The Auditor-General’s Report 1/2025 highlights the need for PTPTN, DPF, and SWCorp to improve their management and governance practices to ensure timely and effective performance. The report also emphasizes the importance of proactive measures to improve internal control and financial management to ensure the sustainability of federal agencies.
FAQs
- What is the total amount of education loan repayments in arrears?
The total amount of education loan repayments in arrears is RM10.853 billion, involving 1.20 million borrowers. - What is the current financial position of SWCorp?
SWCorp’s ability to cover operational costs and financial commitments in the future depends on additional financial assistance from the Federal government. - What are the key recommendations for improvement?
The Auditor-General submitted 10 recommendations, including proactive actions to improve internal control and financial system, reviewing the direction and business plan of subsidiary companies, and closing down dormant or inactive subsidiary companies.
For more information, please visit the National Audit Department’s website at http://lkan.audit.gov.my. Any inquiries and views on the report can be addressed to jbaudit@audit.gov.my.