KSBB denies loss of funds in UKM students' fee collection

KUALA LUMPUR - Koperasi Siswazah Bangi Bhd (KSBB) has assured that there has been no loss of funds involving student fee collections under its collaboration with Universiti Kebangsaan Malaysia (UKM), as highlighted in the Auditor-General’s Report (LKAN) Series 1/2026.

KSBB manager Dr Muhammad Hafiz Md Saad said all collections since the partnership began in 2017 had been managed and channelled to UKM in accordance with the agreement, generating RM90.56 million in revenue.

He added that collections for the Master of Education and Diploma in Postgraduate Education (DPLI) programmes complied with signed agreements, including approvals by the university’s management meeting, senate, Standing Finance Committee (JKTK) and UKM’s Legal Advisor’s Office.

On the issue of approval by the Finance Minister, the matter fell under UKM’s responsibility as the programme owner and provider of the agreement documents, and should have been addressed in the initial 2017 agreement, he said in a statement today.

Muhammad Hafiz explained that fee payments were remitted to UKM after students settled their full semester fees, with the instalment scheme having been agreed upon by the university from the outset to ease students’ financial burden.

Regarding arrears, he said the cooperative had actively managed claims since October 2025, with UKM announcing that outstanding debt had been reduced to RM3.49 million as of Jan 14, 2026, from RM5.32 million on Dec 31, 2024.

Further reviews are ongoing to reconcile student records involving withdrawals, dismissals or deaths, and KSBB pledged full cooperation to resolve any remaining balance transparently, he added.

Addressing allegations of conflict of interest, he said five UKM officers on the cooperative’s board had no authority over university administrative or financial decisions related to KSBB. and were prepared to resign if they did not obtain approval from their respective department heads.

He added that KSBB remains committed to good governance and would not hesitate to pursue legal action against false or defamatory claims, particularly on social media.

Yesterday, UKM said it would take disciplinary and legal action based on the outcome of a full investigation in line with the principle of due process, following the tabling of LKAN 1/2026 in the Dewan Rakyat.

The report found serious irregularities and governance breaches in UKM’s student fee collection and expenditure management that were not in compliance with legal and financial regulations. - BERNAMA