A Pakatan Harapan MP has hit back at BN critics of the coalition's election manifesto promise to allow postponements to the National Higher Education Fund Corporation (PTPTN) study loans, citing the ruling party's own past extensions involving questionable projects.

Serdang MP Ong Kian Ming said in the case of the scandal-ridden Port Klang Free Zone (PKFZ), the government delayed Port Klang Authority's (PKA) loan repayment by up to 10 years.

Ong was responding to PTPTN chairperson and MP for Lenggong, Shamsul Anuar Nasarah, who, according to theSun Daily, last week criticised the Harapan manifesto promise to allow students to postpone their loan repayments until their monthly incomes reach RM4,000.

“What is ironic about the (Shamsul's) statement is that the government has given far longer extensions on loan repayments due to cronyism and corrupt deals.

“For example, in 2007 the government gave an RM4.6 billion soft loan to the Port Klang Authority (PKA) to fund the scandal-ridden PKFZ deal.

“The full servicing of this loan was postponed to 2011, but in 2011, PKA was not in a financial position to start the full repayments.

“In 2013, the cabinet decided to give another ‘grace period’ to PKA, of another four years, and to allow PKA to start servicing this loan only in 2018 (as indicated in the PKA 2013 annual report).

“In total, PKA was allowed to defer its repayment for 10 years as a result of the PKFZ,” Ong pointed out.

'Ministry's own idea'

Shamsul had called Harapan's plan “unrealistic and irresponsible” and said PTPTN allowing delays up to 36 months was a more ‘reasonable’ proposal.

“In other words, students who cannot find jobs get a maximum deferment of three years, but if you are a government-owned company who squandered billions of ringgit because of a corrupt business deal, you can be given a 10 year loan deferment! BN boleh!” said Ong.

The DAP lawmaker further said Harapan's idea was not a new one as it had been promised by the Education Ministry's own Shift 5 of the Malaysia Education Blueprint (Higher Education) 2015 to 2025, launched by then Deputy Prime Minister Muhyiddin Yassin.

Ong said such an “income contingent student loans” policy was also practised in Australia, where repayments are automatically deducted from the salary of a borrower who has exceeded the minimum income amount.

“Pakatan Harapan is confident that this policy can be successfully implemented because salaries of fresh graduates will increase under a clean and transparent government, and repayment rates will also increase among those who have reached the RM4,000 a month income threshold,” he said.

The PKFZ scandal erupted after the original project cost of RM1.957 billion ballooned to RM4.6 billion by the time the project was completed.

PKA general manager OC Phang and two others were in 2009 with charged criminal breach of trust (CBT) and for making false claims.

Two MCA ministers, Dr Ling Liong Sik and Chan Kong Choy, were also hauled to court for cheating the cabinet.

No one was eventually convicted over the scandal.