15 May 2007

PSD after officers who don’t pay loans


PUTRAJAYA: Government officers who have not repaid loans taken from the National Higher Education Fund Corporation (PTPTN), beware.

The Public Service Department is waiting for the list of defaulters from the corporation.

"We have asked PTPTN for their full names. Heads of department have also been told to provide us with the list of officers, regardless of their positions, who still have not repaid a single sen of their loans although they have been in government service for years.

"We will not hesitate to take disciplinary action against these people," PSD corporate and communication head Hasniah Rashid told the New Straits Times yesterday.

PSD will start issuing reminders once the list of names has been received.
Hasniah said disciplinary action, including termination of service, could be taken against the defaulters as provided under the PSD’s conduct and discipline procedure.

She described government officers who defaulted on PTPTN loans as irresponsible and lacking in integrity.

"These people defy orders and they paint a bad image of the civil service."

The Higher Education Ministry, with the help of the National Registration Department, has identified more than 40,000 PTPTN borrowers who are working in government agencies or government-linked companies.

Of the total, about 30,000 have begun servicing their loans while nearly 400, who achieved excellent results, were exempted from repayment.

Deputy Higher Education Minister Datuk Ong Tee Keat had said that the remaining borrowers had not made any payment on their loans.

More than RM1.5 billion is due to PTPTN as of March 31.

Ong had said that after deducting the postponement of certain repayments and exemptions for those who excelled, as well as those who had become disabled or who had died, the amount due was RM1.38 billion from 438,775 borrowers.

However, PTPTN had only managed to collect RM460.76 million so far, which accounted for 33.45 per cent.

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