Universiti Teknologi MARA (UiTM) is at risk of losing approximately RM51.08mil due to delays in seeking compensation from 239 scholarship holders who breached their contracts, according to the Auditor-General’s Report (LKAN) 2021. The report highlights weaknesses in UiTM’s compensation claim process, resulting in a loss of revenue of about RM7.49mil. Audit findings show that as of December 2021, a total of 381 out of 1,496 debtors involved a sum of RM67.08mil.
The report states that in 2019, UiTM’s Finance and Development Committee wrote off a total of 86 debtors with a debt value of RM6.23mil due to various reasons. These reasons include the university’s failure to take legal action within the six-year time limit, debtors having declared bankruptcy, and the absence of debtors’ files at UiTM’s legal adviser’s office.
Furthermore, the report reveals that 259 scholarship holders breached their contracts by failing to complete their studies within the agreed time period. The compensation due from this group amounts to RM52.34mil. However, UiTM’s delay in seeking compensation has resulted in a loss of revenue of RM1.26mil and potential revenue of RM51.08mil.
The report identifies the delay in preparing paperwork for approval by UiTM’s Human Resources Career Development Main Committee and the absence of relevant documents as the reasons for the failure to claim damages from these scholarship holders. It recommends that the institution ensures compliance with circulars, work procedures, and contracts for compensation claims against scholarship holders who breach their agreements. The report also suggests improving coordination, communication, and monitoring between UiTM’s Career Development Division, Zone 2 Finance Unit, the treasurer’s office, and the PUU office in terms of legal actions and the collection of public funds.
Overall, UiTM needs to address these weaknesses and take appropriate measures to prevent further revenue loss and effectively claim compensation from scholarship holders who breach their contracts.
Credit: The Star : News Feed
