Don’t be a godfather to debtors – TK Chua

I have a problem trying to understand the threat issued by Cuepacs to National Higher Education Loan Fund (PTPTN).

The threat was to withdraw authorisation given to PTPTN to automatically make deductions from salaries of civil servants who have outstanding loans with the agency.

The argument was that the deductions were too big, and it had adversely affected the survival of government servants. According to the report, there are civil servants whose pay slip is left with only RM19.00 after the deduction.

PKR Youth has come out in support of Cuepacs, arguing that PTPTN should review its policy on salary deductions. The present economic circumstances merit sensitivity and considerations from PTPTN and other loan agencies to mitigate the suffering of the rakyat.

I have an inkling that what we heard so far is perhaps only half of the story. When we take loans, there are conditions attached to the loans. Since when Cuepacs’ authorisation is needed before PTPTN or other loan agencies could recover repayments according to schedule?

We love to champion the debtors and the poor. But it is also the obligation and responsibility of borrowers to pay back loans they have taken.

I am sure there are predetermined repayment schedules which are reasonable to the borrowers. When civil servants are left with RM19.00 after deduction, I think we have to look at the issue in greater detail. Did the deduction include other loans and obligations besides PTPTN loans?

I know for a fact that many government servants take personal loans from banks and cooperatives with the slightest of reason even though they are already up to their neck with the burden of the PTPTN loans.

They treat loans as extra income. While there may be genuine needs for loans, many have also borrowed needlessly to indulge in a lifestyle beyond their means – buying furniture, fanciful smartphones, going on holidays, hosting elaborate wedding ceremonies, et cetera. I am not saying they shouldn’t get married, but I am questioning the need to spend excessively when one is already in debt.

It is time to instil financial responsibility. Government servants at least have jobs to earn income. The plight of unemployed graduates saddled with PTPTN loans is even worse.

I think Cuepacs and PKR Youth are indulging in populism. Don’t be a godfather to debtors.

They should not interfere if PTPTN is following the predetermined schedules to recover loans from debtors. Otherwise, they are encouraging financial irresponsibility and default among government servants.

Don’t ever let our people think that they can borrow without paying back. – December 24, 2015.

* TK Chua reads The Malaysian Insider.

* This is the personal opinion of the writer, organisation or publication and does not necessarily represent the views of The Malaysian Insider.