The Star Online
8/7/2015


PETALING JAYA: Efforts to recoup outstanding loans from National Higher Education Fund Corporation (PTPTN) borrowers via pay deduction is a move in the right direction.“It is better than disciplinary action,” said Congress of Unions of Employees in the Public and Civil Services (Cuepacs) president Datuk Azih Muda.

He said disciplinary action would not be good on the records for a civil servant loan borrower.Azih, who lauded the move that will start with Public Service Department (PSD) officers this September, said pay deductions would also help the borrowers to become debt-free.

On Monday, it was announced that PSD officers will be the first batch to go through mandatory pay deductions – to set a leading example to other government agencies.PSD director-general Tan Sri Mohamed Zabidi Zainal said 480 of his officers would be subjected to the pay cuts when the initiative kicks off in September.Mohamed Zabidi will meet with the secretaries-general of all the ministries on Friday to discuss the mandatory pay cut initiative for other borrowers within the civil service.

When asked if the deduction would be burdensome to the civil servants who were already facing the high cost of living in the city, Azih was steadfast, saying “a loan must be repaid”.
“Whether we are doing well or not, we are obligated to pay back a loan that we’ve taken,” he said.“Settle the loan, then plan for other things.”

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