Varsities ordered to repay Sh3.8 billion

Minister of Education, Science, Technology and Vocational Training, Prof Joyce Ndalichako.
What you need to know:
Education minister Joyce Ndalichako gives 31 higher learning institutions seven days to recover Sh3.8 billion in loans issued to non-existent students who were purportedly enrolled in the universities in 2015/16.
Dar es Salaam. The government on Wednesday gave 31 higher learning institutions seven days to return Sh3.8 billion in loans issued to over 2,000 “ghost students” in 2015/16.
The order follows a joint investigation carried earlier this year by the Higher Education Students Loans Board (HESLB) and Prevention and Combating of Corruption Bureau (PCCB).
The probe established that the money was paid to 2,192 non-existent students who had purportedly been enrolled in 31 of the 81 higher learning institutions investigated, according to the Minister of Education, Science, Technology and Vocational Training, Prof Joyce Ndalichako.
“It has been established that over Sh3.8 billion was paid to ghost students, so I’m giving the institutions seven days from today to recover and return the money to the government,” she said. “Verification was conducted in three phases to give more time to those who were away for whatever reason, but still over 2,000 did not turn up, we are convinced they don’t exist,” Prof Ndalichako said.
Preliminary findings announced last month showed that 2,763 students were missing, but 571 later turned up, bringing the number down to 2,192, the minister said, adding that the matter had been forwarded to the relevant authorities for further action.
She said another investigation would be conducted to establish what the government lost in previous years in loans issued to phantom students and what needed to be done to recover the money. “It seems there is an elaborate syndicate set up to siphon money from state coffers through HESLB...we are determined to put an end to this.”
Prof Ndalichako directed vice chancellors and principals to set up more stringent mechanisms that would be used to verify students’ particulars, adding that they would be responsible for information submitted to HESLB.
HESLB acting Executive Director Jerry Sabi said the board was taking measures to ensure proper and tighter control of money meant to be issued to students as loans and step up efforts to recover loans from beneficiaries who had completed their studies.