Concern over conflict of interest in PTPTN zakat contribution

Social activist Chandra Muzaffar says PTPTN was established to help students pursue a tertiary education and therefore requires proper financial management. (Bernama pic)

PETALING JAYA: A think tank has urged the National Higher Education Fund Corporation (PTPTN) to explain the RM1 million contribution to the Kedah Zakat Board, voicing concerns over the perception of conflict of interest.

The Institute for Democracy and Economic Affairs (IDEAS) said this was because PTPTN chairman Wan Saiful Wan Jan was from Kedah and had contested for the Pendang parliamentary seat in the 14th general election.

Wan Saiful led IDEAS as its founding chief executive prior to joining politics.

Speaking to FMT, Aira Azhari, the coordinator of IDEAS’ Democracy and Governance Unit, said however that in principle, PTPTN could pay zakat if it met the requirements.

“Given that the source of its wealth is not based on non-halal sources of revenue like gambling, drugs and alcohol, in principle, it can pay zakat.

“A non-halal revenue source is not equivalent to revenue received from a non-Muslim.

“A simple analogy is that of a Muslim businessman selling a T-shirt to a non-Muslim. The source of income of that Muslim is considered halal.”

Social activist Chandra Muzaffar, however, said it was not right for PTPTN to have made the contribution.

He said it raised questions over PTPTN’s financial management and that of the Pakatan Harapan (PH) government.

“The PH government has made proper financial management one of the major planks in its platform, so when it is reported that PTPTN, which is in debt, is contributing to the Kedah Zakat Board, it raises questions,” he told FMT.

He urged the government to take a serious view of the issue, saying the contribution, although well-intended, did not make sense.

“PTPTN is a body that was established to help students pursue a tertiary education. It involves the well-being of hundreds of thousands of students.

“Proper financial management is a prerequisite for public confidence in PTPTN,” he said, calling on PTPTN to explain the contribution given its mandate as well as the rules guiding its administration.

He also voiced regret that both PTPTN and Tabung Haji, which were mooted by prominent economist and Royal Professor Ungku Aziz Ungku Abdul Hamid, were in the spotlight for “doing things” outside their mandate.

Anti-graft group Center to Combat Corruption and Cronyism previously questioned the contribution as well, saying it raised “serious suspicion”. - FMT