Keruah Usit
The government’s proposed 1Care health financing reforms have fuelled a fiery debate, not least because the ruling party’s record in privatisation exercises has been abysmal.
Critics of 1Care warn that the planned RM44 billion national health insurance fund would be the largest Umno cash cow to be fattened for slaughter in our nation’s history.
According to critics like Selangor Menteri Besar Khalid Ibrahim, the opening speaker at last Sunday’s public forum on 1Care in Petaling Jaya, the potential for corruption and leakages would be immense.
He cited the Malaysian peninsula’s grotesque water privatisation exercise as a model case.
Amidst all this heat and mud-slinging, though, the arguments for health care reforms – including, but not limited to, reducing health care expenditure – have largely remained obscure.
Our nation’s healthcare costs include burgeoning out-of-pocket (OOP) private health payments, to the tune of 73 percent of RM16.68 billion in 2008: that is, payments by private patients not covered by insurance, or whose insurance coverage has been exhausted.
OOP means draining ordinary people’s savings to pay for private care. Out of pocket payments leave them, literally, ‘out of pocket’ – some near bankruptcy.
Giving charity to private hospitals
Many of us have heard horror stories of middle-income families losing their nest eggs because of a single family member’s catastrophic illness.
Certain cancer treatments or surgical procedures cost hundreds of thousands of ringgit.
We frequently see newspaper appeals for donations for babies requiring heart surgery or children undergoing organ transplantation. These advertisements are a source of national shame.
Most of these charitable donations go to private hospitals, their doctors and their shareholders.
Even in the somewhat unusual event that a private surgeon or doctor waives professional fees, the corporations running private hospitals still demand their pound of flesh. These corporations are run with one, and only one goal – profit.
The Malaysian public is largely unaware that most of this treatment is available in certain government hospitals, albeit with longer waiting times, and with variable difficulty of obtaining access, particularly outside the Klang Valley.
Many patients simply do not know where to go, in the bureaucratic maze of the public health system, with its mythical gatekeepers. They go to private clinics or hospitals instead.
Elastic demand for health care
Proponents and critics of 1Care agree on one thing: the skyrocketing OOP expenditure on private health care is unhealthy and unsustainable.
Most understand that the demand for health care is elastic, and prices are not subject to traditional supply-and-demand economics.
People are emotional, as well as rational, beings: they cannot coolly restrain their spending on health care once a loved one falls ill.
Desperate relatives may readily agree to expensive but ineffectual medical or surgical procedures, even if they have little idea of the cost-benefit analysis.
This explains the huge revenues posted by healthcare corporations like KPJ, Pantai, Gleneagles, Sime Darby and the like, even during downturns in the economic cycle.
This haemorrhage of citizen’s hard-earned cash into the balance sheets of private hospitals means patients’ private debt is accumulating.
According to the ‘slippery slope’ argument, Malaysia is headed down the path of the US.
The US spends 16% of its GDP on a prohibitively expensive healthcare system, where some insured patients are overtreated, while one in six Americans have no insurance, and effectively no access to healthcare.
As a result, the US has chalked up the heftiest national debt in human history, caused mainly by excessive spending on health and the military.
This causes less investment in other, more productive sectors of the economy, even though a handful of private hospital owners and insurers have grown fabulously wealthy.
The famous capitalist dictum, repeated ad nauseam by monetarist Milton Friedman, that ‘there is no such thing as a free lunch’, takes its natural course in private hospitals.
There are certainly no free lunches there: no free needles, no free cotton dressings – not even free toilet rolls.
Stopping the bleeding
Among the government’s main selling points are that the 1Care financing system will be able to cap OOP costs, reduce the government burden from general taxation, as well as provide universal health care access.
Opponents of 1Care say that the Ministry of Health estimates the cost of the putative National Health Insurance Fund to be 10% of the average household income, and that imposing a mandatory contribution would add to an unbearable tax burden.
Senior doctors also point out that our current ‘fee-for-service’ funding models means that private doctors make more money for every investigation, medication and operation that they advise.
Some doctors accept that a fixed salary for doctors would be a better model to keep private health care costs manageable, while many private doctors are outraged at the suggestion.
Can reining in health care expenditure, particularly in the private sector, be achieved without the potential leakages intrinsic to the 1Care proposals?
Can we establish an equitable health care system for all, including the poor populations of the peninsula, Sabah and Sarawak?
Perhaps the best advice regarding health care reform was provided by Dr Subramaniam Pillay, a leading member of Aliran, the Coalition Against Health Care Privatisation, and the Bersih 2.0 Steering Committee.
At the 1Care forum, speaking long after the address by Khalid Ibrahim, he said Malaysian citizens must not rely on the Health Ministry, nor private doctors, nor politicians opposing the scheme, to find the best answers.
The interests of these, he cautioned, might coincide with those of all citizens to some extent, but would diverge in other respects.
Instead, he argued, we must educate ourselves regarding the need to reform, and the risks posed by 1Care.
We must vote in an informed way, and put pressure our leaders – if necessary, by mass mobilisation similar to last July’s Bersih 2.0 rally.
KERUAH USIT is a human rights activist - ‘anak Sarawak, bangsa Malaysia’. This column is an effort to provide a voice for marginalised Malaysians. Keruah Usit can be contacted at keruah_usit@yahoo.com
Hmmm…just as planned…
You can see how well-planned the UMNO Kronies in re-organised their modus operandi just before 1Care being implemented…
He He He! It’s shows clearly 1Care would ensure all Kronies must grab their place first so later all easy money sucked like magnet one-way long-term secured for their big profits…
BRAVO UMNO KRONIES BRAVO….1CARE YOU SICK YOU LOSE KRONIES GET RICH HA HA HA!
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Boustead in RM534mil takeover of Pharmaniaga
By YVONNE TAN, The Star, Saturday June 12, 2010
KUALA LUMPUR: Boustead Holdings Bhd has proposed to buy 86.81% of the issued and paid-up share capital of drug maker Pharmaniaga Bhd, owned by UEM Group Bhd, for RM534mil cash.
The proposed deal would be funded via internally generated funds, namely the RM363mil from the recent sale of its insurance unit BH Insurance (M) Bhd and bank borrowings, the company said.
Boustead deputy chairman/group managing director Tan Sri Lodin Wok Kamaruddin said the acquisition, which works out to RM5.75 per share, was expected to pave the way for Boustead, largely involved in property and plantation now, to move into the pharmaceutical business in the Asean region “in a serious manner”.
At RM5.75 per share, the offer represents a 13% premium over Pharmaniaga’s last traded price of RM5.10.
Trading in Boustead and Pharmaniaga shares was suspended ahead of yesterday’s announcement.
Lodin, who was speaking after the sealing of an agreement between the parties here yesterday, said the group had no intention of taking Pharmaniaga private and would retain its listed status.
However, Boustead would undertake a mandatory general offer to acquire the remaining shares it does not own in Pharmaniaga after the proposed exercise is completed.
For Pharmaniaga to remain listed, Boustead must pare down the 100% stake it would then have in Pharmaniaga to meet the required 25% public float.
Lodin said the group “was looking at various options” to fulfil this requirement.
“Pharmaniaga will be a good addition for us. We plan to expand in the Asean region and Pharmaniaga already has an existing network there (Indonesia and Vietnam),” Lodin said.
Boustead currently owns a subsidiary involved in healthcare, namely Idaman Pharma Manufacturing Sdn Bhd.
“Currently, the pharmaceutical business’ contribution to the group is very small; we expect Pharmaniaga to start contributing 5 sen per share to Boustead by the next fiscal year ending Dec 31, 2011,” Lodin said.
On whether there would be any change in the organisation structure at Pharmaniaga following the buyout, Lodin said “we would like to retain as many personnel as possible”.
Meanwhile, UEM, which is owned by Khazanah Nasional Bhd, said its sale of Pharmaniaga was in line with its goal of focusing on the property, construction and engineering sectors.
“Boustead gave us the best offer and we were happy to seal the deal,” chairman Tan Sri Ahmad Tajuddin Ali said.
Analysts contacted by StarBizWeek were largely positive on Boustead following the deal, saying it was value-accretive.
For the first quarter ended March 31, Pharmaniaga posted a net profit of RM9.3mil on revenue of RM317.6mil.
Listed in 1999, it is the largest integrated local healthcare company in Malaysia.
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Pharmaniaga acquires Boustead’s pharma divisions
by Andrea Mathew, Malay Mail, Thursday, December 22nd, 2011
KUALA LUMPUR: Pharmaniaga Bhd has acquired Idaman Pharma Manufacturing Sdn Bhd and Idaman Pharma Sdn Bhd for a total of RM99.73 million in efforts to consolidate Boustead’s pharmaceuitical divisions in the country.
This will mean all pharmaceutical divisions under Boustead will be transferred to Pharmaniaga, largest integrated local healthcare company in Malaysia.
A subsidiary of Boustead Holdings Bhd, Pharmaniaga Bhd will see RM95 million capex allocation for the next year.
Pharmaniaga managing director Datuk Farshila Emran (pic) said: “Out of this amount, one-third will go towards its pharmacy information system.
She added: “Pharmaniaga plans to spend about RM30 million between 2012 and 2015 for its Sungai Petani plant expansion project and to upgrade equipment and facilities.”
“We are also looking at pumping RM23 million into the construction of a new plant in Perak, as well as, to expand the existing plant in Seri Iskandar, Perak,” Farshila told reporters after the extraordinary general meeting (EGM) of Boustead Holdings and Pharmaniaga yesterday.
The EGM saw shareholders agreeing to the acquisition of two other Boustead’s pharma divisions by Pharmaniaga.
Some of the developments the company has seen in the last year is the reduction of concession delivery from 60 days to seven days for West Malaysia and 10 days for East Malaysia.
Boustead Holdings Bhd deputy chairman and group managing director Tan Sri Datuk Lodin Wok Kamaruddin said Pharmaniaga would contribute about 10% to Boustead’s bottomline beginning next year and this was expected to increase gradually to 15% over the next two to three years.
“The health sector, including pharmaceuticals, is one of the 12 National Key Economic Areas. We believe the prospects and future for the pharmaceutical business is going to be good,” he said.
Pharmaniaga, the largest integrated local healthcare company holds a 10-year concession to purchase, store, supply and distribute pharmaceuticals and medical products to 3,750 government hospitals and clinics nationwide.
Pharmaniaga’s book value is worth some RM900 million a year.
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Boustead, Pharmaniaga step up rationalisation
by Syarina Hyzah Zakaria, The Edge, Thursday, 11 August 2011
KUALA LUMPUR: Pharmaniaga Bhd has signed a memorandum of understanding (MoU) with parent company Boustead Holdings Bhd and private company Idaman Pharma Sdn Bhd(IPSB) to acquire Idaman Pharma Manufacturing Sdn Bhd (IPMSB).
According to the announcement on Bursa Malaysia, under the terms of the MoU, Pharmaniaga will acquire 51% of IPMSB from Boustead for RM12.75 million. The agreement also includes the settlement of an inter-company loan between IPMSB and Boustead of RM68 million by Pharmaniaga, which values the entire deal at RM80.75 million.
In addition, IPMSB will pay RM15 million worth of dividends to Boustead from the financial year ending Dec 31, 2011. Pharmaniaga will acquire the remaining 49% from IPSB for RM12.25 million.
In short, Pharmaniaga is looking to pay RM25 million for IMPSB in cash. However, this is stripping out the RM68 million inter-company loan.
According to Pharmaniaga, IMPSB has a value of RM99.7 million.
IPSB has been supplying Pharmaniaga with pharmaceutical products since 2005. Under the latest three-year agreement signed in May, it is supplying 50 types of pharmaceutical products. Of the 50, IPMSB supplies 39.
Under the MoU, the supply contract will be terminated with a compensation of RM51 million for IPSB.
Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin said: “This corporate exercise will give us a stronger footing in the pharmaceutical industry as we anticipate synergistic benefits from the operations of IPMSB and Pharmaniaga collectively. We also stand to benefit from cost improvements as a result of streamlining and optimising manufacturing facilities, production capacities as well as the cross fertilisation and sharing of best practices between IPMSB and Pharmaniaga”.
As for Boustead, the disposal will create synergistic benefits for them with the expected enhancement of the group’s financial position. The proceeds from the disposal will be utilised to pare down borrowings of the entire group.
Boustead currently holds 97.81% of Pharmaniaga, which the former acquired last year from UEM Group Bhd for RM534 million.
Boustead has been working to pare its stake down in Pharmaniaga through a series of corporate exercises. This includes a dividend-in-specie, a restricted offer for sale and a bonus issue.
Pharmaniaga also announced yesterday a net profit of RM13.92 million on the back of RM396.43 million in revenue for its 2QFY11. For the three months, the company’s earnings per share stood at 13.01 sen.
In contrast to the corresponding period a year ago, its net profits slipped 5.63% despite revenue gaining 13.16%.
The company said the stronger revenue registered in 2Q was higher as a result of increased sales from the government sector and attributed the weaker profit to lower margins and the amortisation of a new plant during the quarter.
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Pharmaniaga posts RM15.6m Q3 profit
Business Times, 01-11-2011
KUALA LUMPUR: Pharmaniaga Bhd has recorded a pre-tax profit of RM15.646 million for the third quarter ended Sept 30, 2011 compared with RM15.405 million in the previous corresponding quarter.
Its revenue rose to RM371.432 million from RM334.337 million.
For the first nine months, Pharmaniaga delivered an improved pre-tax profit of RM56.818 million compared with RM48.163 million while turnover rose to RM1.153 billion from RM1.002 billion.
In a statement today, Pharmaniaga Chairman Tan Sri Lodin Wok Kamaruddin said though the third quarter results were modest in nature, it resulted in a significant improvement in profit before tax as well as turnover on a nine-month basis.
“As we look to close the final quarter of this financial year we hope to see further gains to our bottom line.
“What is most important is that we are strengthening systems, working at ways to improve cost management, aligning synergies particularly with the recent acquisition of Idaman Pharma Manufacturing Sdn Bhd.
“Moving forward, we are optimistic of domestic growth while we expect to see regional growth in the foreseeable future,” he said. – Bernama
Comment by Kamus — February 18, 2012 @ 9:38 AM |
And why so many unemployed nurses out there?
Yes this is another SCAM albeit in education however related to healthcare too (another scam spinoff effect)
The Healthcare Kronies and Medical College Kronies works in parallel
Medical College Kronies as usual CHEATING the nursing students out of their PTPTN Loans only to give them half-done junk degree simply worth nothing without the external qualifying nurse exam the final license to become certified employable nurse
Medical College Kronies wouldn’t bother a damn to tell this but only keen to grab as many PTPTN Loans for their big fat profits
So who cares if the nursing students graduated only to be told there’s another Big Exam to take
Then their PTPTN Loans (RM60K onwards) good for nothing and these sorry students ends up as jobless bankrap graduates!
So don’t expect much quality on graduates produced when these Medical College Kronies simply running huge SCAM targeting PTPTN Loans = JUNK DEGREE = JOBLESS BANKRAP GRADUATES!
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Thousands of private college nursing grads jobless
by Dr Jeyakumar Devaraj, Malaysian Insider, January 14, 2012
JAN 14 — The Higher Education Ministry’s failure to control the greed of private nursing colleges has established a situation in which thousands of their graduates are jobless. And yet, these graduates are burdened with PTPTN loans of as much as RM50,000 to RM60,000.
Here are the facts:
- 61 private institutions have been given the go-ahead by the Higher Education Ministry to conduct nursing courses;
- there are currently more than 37,500 nursing undergraduates enrolled in these 61 private learning institutions. A large percentage of these undergraduates have acquired the PTPTN loan, normally around RM55,000;
- the total amount of staff nurses employed throughout the country as of December 2010 was 61,110. Of that total, 47,992 were stationed in the government sector and the remainder 21,118 in the private sector;
- in 2010, 7,665 nursing graduates from private institutions sat for the Nursing Board examination. Only 70.1 per cent of them passed the examination compared to the passing rate of 98.4 per cent amongst graduates from Health Ministry colleges.
- Only 42.7 per cent of nursing graduates from private higher education institutions in 2010 succeeded in acquiring jobs at hospitals and clinics
Taking all these facts into account, we wish to know the following:
- Is it the Higher Education Ministry that determines the intake quotas for nursing courses in private educational institutions in Malaysia? If so, what is the rationale for allowing an intake quota of 9,000 undergraduates for the year 2011?
- Is the minister aware that every trained nurse must renew his or her professional licence (APC — Annual Practising Certificate) every year? One of the terms that is required to acquire the APC is an occupational status as a nurse in a hospital. Therefore, if one is unable to get employed as a nurse, he or she is not eligible to renew his or her APC.
- Is the minister aware that the marketability of a staff nurse will be adversely affected if she is unable to get a nursing post in a hospital? This is due to the fact that a nurse’s skills will deteriorate if the graduate is not given a chance to practise as a nurse.
- Is the minister aware that a lot of the graduates at nursing private higher education institutions originate from families that are not rich? They are hoping to get a job as a nurse in order to pay back their PTPTN loans and to aid their respective families.
- Is the minister aware that repayment of the PTPTN loan is required even if the graduate is unable to acquire a job as a nurse?
- How many of the 61 private higher education institutions currently offering nursing courses have started or are applying to start medicine courses to train doctors?
Our demands:
- Freeze the intake of new students into private nursing colleges. The market is flooded at this point in time. Do not burden more young girls with PTPTN loans that they will not be able to pay back.
- Look into the other courses that are offered by the private colleges such as physiotherapy, health care, laboratory assistants, and radiology. If there exists a similar situation of over-supply for these other courses as well, please freeze the intake of new students into these courses.
- Reject applications of private higher education institutions to conduct medicine courses if the passing rate in the Nursing Board examination was below 90 per cent for graduates from those institutions in 2010 or 2009.
- Take over the PTPTN debts for all nurse graduates who have not acquired a nursing post in hospitals despite passing the Nursing Board’s examination.
- Conduct an investigation to determine why the market for trained nurses is flooded — 37,500 will graduate in three years, whereas the need for nurses is only 1,500 per year (more or less five per cent of the total currently employed in the private sector). Is this because of poor judgment on the part of officials who determine the quota or is corruption involved? The profits of private higher education institutions are immense!
- Review the validity of the policy of relying on private companies to provide higher education for our younger generation. It is evidently clear from the actions of the private nursing colleges that maximising profits is their main focus! The existence of PTPTN loans has underwritten the income of these private higher education institutions, and they are currently competing to attract as many students as possible without a care as to whether they can provide adequate practical exposure to their students or whether there are sufficient job opportunities for their graduates.
We hope that the Higher Education Ministry officials will study the issues that we have brought up and fix a date within a month’s time to inform us of the steps that will be taken by the ministry to manage the identified problems in this memorandum. — aliran.com
* The above article is a memorandum submitted by Dr Jeyakumar Devaraj to the Higher Education Minister on December 13, 2011 expressing concern about the high number of unemployed nursing graduates.
* Dr Jeyakumar Devaraj is the member of Parliament for Sungai Siput.
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‘Study why graduate nurses fail to obtain jobs’
Borneo Post, February 10, 2012, Friday
SUBANG JAYA: There is a pressing need to look into why many local graduate nurses fail to obtain jobs, noted Higher Education Minister Datuk Seri Mohamed Khaled Nordin.
A research into the matter is vital, he said at the Second International Nursing Research Conference organised by Universiti Malaya’s Nursing Science Department’s Faculty of Medicine here yesterday.
His speech was read out by the ministry’s deputy secretary-general Datuk Rohani Abdullah when opening the two-day conference on his behalf.
Mohamed Khaled said the department was striving towards enhancing the quality of nursing in the country to attain world-class standard.
One of the approaches, he said, was to promote nursing research and utilisation of research findings in nursing practice.
Alluding to the theme of the conference, ‘Access to Quality Health Through Research’, the minister said research was one of the important elements and mechanisms towards an innovative society in various fields, including nursing.
The conference was organised in conjunction with the faculty’s 50th anniversary celebrations. — Bernama
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‘Qualifying exam, poor English to blame’
by Karen Bong, Borneo Post, February 1, 2012, Wednesday
KUCHING: Failure to sit for or pass the qualifying exam with the Malaysian Nursing Board (MNB), and poor English language proficiency could account for 8,000 nursing graduates in Malaysia being unemployed.
Public Health Assistant Minister Dr Jerip Susil said the government was aware of the issue, especially when unemployment meant decades of debts for many graduates.
“Our concerns now are that jobless nurses are facing the burden of repaying study loans, which will affect the loaners and parents who sent their children for further studies in the hope they will have a secure future,” he said when met at his office recently.
Dr Jerip said nursing students were required to sit for the qualifying exams with MNB before they could register and practise nursing.
“Colleges that possess the licence to train nurses should ensure that their programmes are tied up with the MNB which is strict with the standard and qualification of nursing graduates,” he said, adding that it was important that graduates adapt to real life situations.
Nursing students were normally trained in a non-hospital environment equipped with artificial wards, clinics and dummies, Dr Jerip elaborated.
“Hence placing students on practical and attachment with hospitals is important for them to gain hands-on experience and skill,” he emphasised.
The Bengoh assemblyman called on all private colleges to offer a comprehensive and quality nursing course that could meet the demand of the government and private sectors.
He pointed out that I-Systems College, which he declared open, had made it compulsory for nursing students to sit for the board’s exams, without which they would not graduate.
“I am pleased with I-Systems College as their nursing course is tied up with the MNB. I am happy to note that the college has recorded 100 per cent passes with all graduate nurses interviewed by private hospitals for employment,” he said.
Dr Jerip said he would visit all the colleges offering nursing courses to look into their curriculum and setup as well as ensure qualifying exams were with the MNB.
Besides qualifying exams, poor proficiency in English among graduates could be another factor contributing to their unemployment, he reckoned.
“English is still the main language used in the medical field, especially in communication in private clinics and hospitals. But I realise that many youngsters with poor command of English could possibly fail in interviews,” he said.
Strengthening the command of English is an important aspect of nurse training which is why higher institutions make it compulsory for students to take the English subject, he added.
Asked if the ministry was responsible for monitoring and supervising nursing courses, Dr Jerip replied that the licence was approved by the federal side.
He observed that 98 per cent of nursing students came from native communities and rural areas such as Ulu Baram and Ulu Rejang. It could be that urban people were reluctant to do night shifts and youngsters felt it was not conducive for them.
“However, rural people are ready to commit to a career with significant expectations. They think there aren’t many avenues of employment for them. Another reason could be the potential to migrate.”
Malaysia, apart from the Philippines, is one of the significant countries in Asia which exports nurses to countries like Saudi Arabia, Middle East, Australia and New Zealand, he pointed out.
“Malaysians are well known for their good command of languages like English and Bahasa Melayu, so Malaysian nurses are in demand especially in the Middle East,” he said.
“But they must have the skills and proper training in Malaysia and master the English language. When the opportunities arises, they could seek employment overseas.”
Jerip noted that work migration could leave Malaysia suffering from a shortage of qualified nurses.
“In the past, there was an influx of government doctors resigning and leaving to work overseas and also to migrate, especially to Australia where there is a shortage of doctors and nurses,” he said.
Back home, the shift from government to private sector is apparent.
In Malaysia, the ratio of doctors to general population is 1:500 in urban areas and 1:2,000 in rural areas.
“We are improving and part of the government’s effort is to reduce this disparity as Malaysia has a small population of doctors,” he added.
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115 PTPTN loan defaulters charged with bankruptcy
by Wong Yeen Fern, Malaysia Kini, Thursday, 22 February 2007
The National Higher Education Fund (PTPTN) will take several thousands of former students to court over their failure to settle their study loans.
Contacted today, PTPTN chief executive officer Yunos Abdul Ghani said these students had not settled their debts despite three legal notices being issued.
“Students from the 1997-2004 batch will face court action for failing to pay their loans following a (third) legal notice being sent to them,” he added.
He said the former students who received the third legal notice were required to settle their debts within two weeks.
Yunos reiterated that those who cannot afford to do so should come forward and explain their situation. He said they should provide valid evidence and logical reasons.
Declare bankrupt
As for those who did not receive the legal notices, he said these students should get in touch with the PTPTN.
“For instance, if they have changed their address, they should have inform us about it, because it is their duty to inform us, if not we will never know,” he added.
He said those who did not receive the legal notices must settle their debts or face legal action as well.
Meanwhile, Nanyang Siang Pau reported yesterday that 115 students had been charged in court over this issue.
Yunos said PTPTN will consider having those who still refuse to pay as being declared bankrupt but stressed that it would be the last resort.
About RM600 million was loaned out to the first batch of students in 1997 and of this only RM270 million has been successfully collected from these students.
As for the overall figures, Yunos said PTPTN is still processing this.
The financial aid programme was established in 1997 and is mainly focused on students who have gained admission to local universities but are unable to further their studies due to financial constraints.
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PAC zooms in on PTPTN’s RM46b deficit
By Shazwan Mustafa Kamal, Malaysian Insider, 9 Nov 2010
KUALA LUMPUR, Nov 9 — The parliamentary Public Accounts Committee (PAC) kickstarted its probe today into the National Higher Education Fund’s (PTPTN) possible RM46 billion deficit by hauling up top officials from the body as well as the Ministry of Higher Education.
The PTPTN’s deficit crisis was among nine “irregularities” highlighted in the 2009 Auditor-General’s Report.
According to the A-G’s Report, based on cash flow projections PTPTN will face a deficit of RM45.89 billion up to the end of the 11th Malaysia Plan in 2016.
As such, PTPTN needed additional funds amounting to RM8.56 billion under the Ninth Malaysia Plan, RM15.67 billion under the 10th Malaysia Plan and RM21.66 billion under the 11th Malaysia Plan.
PAC chairman Datuk Seri Azmi Khalid said today the committee’s main concern was PTPTN’s sustainability in the near future.
Azmi said the investigation was focused on PTPTN’s inefficient loan repayment system, but stopped short of providing details.
“From what we saw if they continue as they are, PTPTN is not sustainable because the expenditure exceeds income but we cannot say more.
“We don’t want to repeat (what) the audit report (has mentioned), whatever the weaknesses, they are committed to rectify but we are looking beyond, mainly on the sustainability of PTPTN and why it took them so many years. It took them 13 years (1997-2010) and yet the system is still defective in terms of collections, tracing information as reported in the audit report,” said Azmi.
In the audit report, it was reported that the PTPTN had approved loans totalling RM23.78 million to 16,013 students who did not apply for the facility.
Azmi said the PAC had called up Ministry of Higher Education secretary-general Tan Sri Dr Zulkefli A. Hassan , acting PTPTN CEO Wan Ahmad Wan Yusoff and representatives from the Government Housing Loan Department, but added that investigations were still on-going and there were no conclusions made yet.
“PAC will also be meeting a few relevant agencies such as the Ministry of Finance which has appointed other agencies to handle the loan system,” said the Padang Besar MP.
Another PAC official said the accounts committee will be questioning the Finance Ministry on Prokhas Sdn Bhd, a company under the ministry which had been appointed to administer the PTPTN database system.
“The project was awarded to Prokhas in peculiar circumstances, to a company which does not have any experience in the field. It was totally outsourced to an Indian firm where it became problematic. It is only at 16 per cent completion from 2006,” said the official who spoke on the condition of anonymity.
The official claimed that the decision to award the contract was not made by the PTPTN management.
He said the project, which stalled twice, was “mysteriously” continued despite the problems faced, adding that the matter was blamed on the former CEO, who may be called up to explain.
It is understood that PTPTN’s deficit woes could affect educational providers such as Masterskill Education Group Bhd.
Masterskill, which offers nursing courses and allied health sciences education programmes, was reported in The Edge today as having experienced a sharp decline and trading of its shares since the A-G’s Report was made public recently.
It is said that the sell-down may be due to concerns over PTPTN’s possible RM46 billion deficit, as highlighted in the A-G’s Report.
Masterskill is said to rely on PTPTN to provide financing for 95 per cent of its students.
Comment by Kamus — February 18, 2012 @ 9:36 AM |
We cannot trust UMNO to handle even one ringgit of our money. MIC,Gerakan, MCA, and all BN components combined do not have any power at ll to stop UMNO from plundering our nation. As for PBB and PBS, their leaders had their own individual vested interests in holding on to state power. Malaysians do not trust UMNO controlled BN government anymore in implementing any mega projects. Our nation’s corruption index and national debts to GDP ratio which determine our national economic health had gone through the roof under the UMNO controlled BN government and beyond salvation. ONLY a change in government shall nurse us back to economic recovery and better health.
Comment by Mata Kuching — February 18, 2012 @ 6:34 AM |