Auditor-general's report recommends review of PTPTN collection

The National Higher Education Fund Corporation (PTPTN) needs to review the education loan repayment collection mechanism and increase monitoring of the agency’s education loan management.

The Auditor-General’s Report (LKAN) 1/2025 on the Financial Statements of Federal Agencies for 2023 stated that as of Dec 31, 2023, arrears in PTPTN loan repayment amounted to RM10.853 billion involving 1.20 million borrowers.

“Overdue education loan repayments also show an increase from 2019 to 2023,” said Auditor-General Wan Suraya Wan Mohd Radzi in a statement following the tabling of the Auditor-General’s Report 1/2025 in the Dewan Rakyat today.

Wan Suraya also called for periodical monitoring of the Fundamental Research Fund by five research universities.

This is to ensure projects are carried out according to plan and achieve set key performance indicators.

“The audit report shows that the progress of research projects under the fund is at a less than satisfactory level (53.9 percent).

“Only 11.3 per cent of projects implemented are at a good level while 7.3 percent are categorised as problematic,” she said.

Meanwhile, Wan Suraya also addressed concerns regarding the Solid Waste Management and Public Cleaning Corporation (SWCorp) regarding its financial position as of Dec 31, 2023.

She said SWCorp’s ability to cover operational costs and financial commitments in the future would depend on additional financial assistance from the federal government.

She said the problems of PTPTN, the Fundamental Research Fund, and SWCorp are included in the main focus of the audit which is one of the three focus issues of LKAN 1/2025.

Improving govt agencies

The auditor-general through the LKAN also submitted 10 recommendations for improvements to federal agencies.

They include proactively improving the agency’s internal controls and improving the financial system in line with accounting standards to ensure accurate financial reporting and effective financial management.

Wan Suraya said it was to ensure the ability of federal agencies to continue operations, as well as reduce liabilities and dependence on the government.

Another recommendation was to review the direction and business plan of subsidiary companies that suffered losses and did not provide proper returns.

Federal agencies were also recommended to pay serious attention to issues including closing subsidiary companies with dormant or inactive status for more than five years.

The LKAN 1/2025 on the Financial Statements of Federal Agencies in 2023 will be uploaded on the National Audit Department’s website after it has been tabled to the Dewan Rakyat.

Any enquiries and views on the report can be addressed to jbaudit@audit.gov.my.

- Bernama

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