Ptptn S Rm1 Mil Donation To Zakat Board Raises Suspicions Says C4

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C4 executive director Cynthia Gabriel says there is ‘clearly a case of conflict of interest’ and ‘abuse of power’.PETALING JAYA: Anti-graft group Centre to Combat Corruption and Cronyism (C4) says the RM1 million cheque the National Higher Education Fund Corporation (PTPTN) gave to the Kedah Zakat Board to help zakat (religious levy) recipients raises “serious suspicion”
PTPTN chairman Wan Saiful Wan Jan was yesterday reported as saying a mock cheque worth RM1 million was handed to Kedah mufti Syeikh Fadzil Awang
Malay Mail quoted Wan Saiful as saying that this “small step” would help strengthen ties between PTPTN, which is under the federal government’s purview, and the Kedah state government and alleviate poverty
In a statement, C4 executive director Cynthia Gabriel said PTPTN had recently said it borrowed money from banks to fund some 2.9 million students and questioned how it still had funds
“The total bank loan has amounted to RM51.2 billion with a very long repayment period,” she said, referring to a statement by PTPTN deputy chief executive officer (policy and operations) Mastura Mohd Khalid
“This is the amount that PTPTN used as capital to continuously provide loans to students,” Cynthia said
PTPTN chairman Wan Saiful Wan Jan.On Nov 23, the New Straits Times quoted Mastura as saying that PTPTN had since given out RM54.7 billion in loans to 2.9 million students by taking out loans (RM51.2 billion) from several financial institutions
On Aug 12, Prime Minister Dr Mahathir Mohamad said the amount of student loans owed to PTPTN was almost equivalent to the total debts faced by state-investment firm 1MDB, or some RM39 billion
Biggest chunk goes to operational costsCynthia added that a study found that the biggest chunk of expenditure costs in Lembaga Zakat “goes to operations and management costs, as opposed to the poor” and questioned PTPTN’s decision
“This move begs the question: why Kedah in particular? Is Lembaga Zakat Negeri Kedah running short of funds as compared to other states
“Is this related to the PPBM annual general meeting tomorrow?”Cynthia said this was “clearly a case of conflict of interest” and “abuse of power arising from political appointments and those tasked with dealing with government-linked funds”
Wan Saiful is a member of PPBM’s Supreme Council and PPBM Perlis chief. He joined PPBM this March
PPBM’s first AGM since the May 9 polls convenes tomorrow
Cynthia claimed that Wan Saiful had also made a RM100,000 contribution to Perlis flood victims in the past under PTPTN’s corporate social responsibility programme as well
“There has been a systematic conflict of interest perpetuated by the former BN (Barisan Nasional) government through political appointments in government agencies and GLCs
“We note with concern the practice has continued to flourish under the current Pakatan Harapan (PH) government, as seen in this PTPTN and other issues,” she said
“It is imperative for the PH government to address this issue immediately in moving towards Malaysia Baharu and in implementing its institutional reform agenda
“It is important to note that the PH election manifesto makes several references to appointments to key positions that should be based on merit instead of political links.”C4 called on the government to put a stop to political appointments “which will cause a conflict of interest and abuse of power” and put in place a clear policy or law to prevent such instances
Earlier today, PTPTN announced that it is setting aside RM50,000 in the educational fund for accounts registered to the six firefighters who died in service this year during a rescue mission in Puchong. - FMT

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