PTPTN has a social responsibility to account for its zakat contributions

After civil society organisations called for the National Higher Education Fund's (PTPTN) to account for its zakat contribution to the Kedah State Zakat Board, PTPTN clarified that it had also held ceremonies for the handing over of the zakat payments to boards in Malacca, Penang, Johor, Pahang, Negeri Sembilan and Sarawak. 

It further added that similar ceremonies would be held in other states that receive zakat payments if held by the respective states' Islamic religious authorities.

However, PTPTN’s statement only raises more questions.

Today, the public is still in the dark on the amount of PTPTN’s investment gain this year to justify its zakat contribution, of which the total amount is not disclosed. 

PTPTN has already made its commitment to contribute zakat payments. This may be of a considerable sum – in the range of about RM13 million, assuming that the same amount of RM1 million (given to Kedah) has been given or shall be given to each state zakat board.

We, the following civil society organisations, view with great concern of PTPTN’s recent approach in practising its corporate social responsibility when the fund is still plagued by its billions of outstanding student loans yet to be recovered; still not independent financially to fulfil its primary objective to grant student loans, but has to rely on public or federal funds to achieve this; and still indebted to institutions of a sum of about RM51.2 billion, as reported by the Center to Combat Corruption and Cronyism (C4), referring to a statement by PTPTN deputy CEO (policy and operations) Mastura Mohd Khalid.

We therefore, call on PTPTN:

• To disclose its audited accounts to the public; 
• To account for its multibillion ringgit debts and also its ability to repay such debts; 
• To account for its competency of recovering billions of ringgit in student loans so that these monies can become rolling fund for granting further student loans, making it less financially dependent on public or federal funds;
• To account for its current investment gain; and
• To disclose its ability to fulfil its primary objective of granting students loans independently without having to rely on public or federal funds.

We further call on all related government agencies, bodies, institutions and ministries to review and revamp old and inappropriate practices by the previous corrupted government to ensure good governance with accountability and transparency, as well as to eliminate rent-seeking and corrupt practices.

Issued by:

• The Kuala Lumpur and Selangor Chinese Assembly Hall (KLSCAH)
• Tamil Foundation Malaysia
• Merdeka University Berhad (Education Centre)
• LLG Cultural Development Centre
• The United Chinese School Teachers’ Association of Malaysia (Dong Jiao Zong) -Mkini