- Fishrot accused among those paying back
- Fund recovers N$25 million in two years
- If govt can fund war vets, it can fund students – Katjimune
In its invigorated debt-recovery drive, the Namibia Student Financial Assistance Fund (NSFAF) has reportedly given three parliamentarians an ultimatum to pay up or face legal consequences.
This aggressive stance has resulted in the recovery of at least N$25 million over the last two financial years.
New Era is reliably informed the three lawmakers the NSFAF is after are Popular Democratic Movement’s Maximal l iant Katjimune and Inna Hegari and Swapo’s Patience Masua.
The three MPs are yet to respond to NSFAF’s demands.
In contrast, Landless People’s Movement lawmaker Utaara Mootu, Swapo’s Emma Theofelus [deputy information minister] and Juliet Kavetuna, are among those who have reacted positively to NSFAF’s demands.
The students’ fund is reportedly owed more than N$10 billion, attributed to over 132 000 beneficiaries who have defaulted since its establishment.
“The fund is proceeding with those [Katjimune, Hengari and Masua] that it sent final letters of demand to and it is to litigate,” a source briefed on the matter confirmed. The fund, New Era also understands, is not only going after lawmakers but anyone who owes it, including Namibians in high offices.
“We know where they are in terms of traceability. We will find them. We also want to dispel this fallacy that NSFAF doesn’t have records. We challenge those who say so to give us their identity numbers so we show them what they owe,” another individual with intricate knowledge about NSFAF’s debt-recovery drive said.
The repayment of NSFAF loans has always been a hot potato that many have grappled with over the years. The fund is being reintegrated into the government as a directorate under the higher education ministry.
Repayment proponents have argued that honouring loan obligations would make the fund self-sustaining and revolving.
“We are going for litigation and blacklisting. We’re going after the gainfully employed, not the unemployed. But the unemployed also have a responsibility to come to us to explain their situation,” NSFAF company secretary Wise Immanuel said upon enquiry late yesterday.
Antagonists, however, have propelled an anti-repayment agenda premised on the fact that it is the government’s responsibility to provide free quality education from Grade one to university.
They also argue that repaying loans would mean graduates, some of whom are from disadvantaged households, would be debt-strapped immediately after graduating.
Unshaken
Katjimune however remained unrepentant in his resolve.
“I remain of the view that the government has an inherent responsibility to provide free, quality higher education in line with what President [Hage] Geingob promised in 2015. We can also not allow graduates who are from previously disadvantaged backgrounds and who must uplift their families to graduate in NSFAF debts,” a candid Katjimune said.
The fund’s letter to Katjimune, seen by this paper, is dated 14 June 2023. It purportedly reached his desk on 15 June 2023.
“NSFAF has up to date never served me with any letter of demand and my position remains, in line with the resolutions taken by numerous student bodies that I served in during my days as a student leader, that we should not and will not pay back NSFAF,” he declared.
The youthful lawmaker said if the government can pump billions into war veterans’ projects and their dependents, “then the same courtesy can surely be extended to students who are trying to pursue an education to uplift their families from generational poverty.”
Hengari too is in a similar dilemma with the student fund.
“I’ve asked NSFAF to share with me a copy of the contract agreement I signed [with them]. They have been unable to do so. Until I have the copy of the contract, I am unable to determine the amount owed to the institution. I cannot just trust some form that bears no signature of mine,” Hengari said yesterday.
Meanwhile, Masua had not responded to questions sent to her at the time of going to press.
Catch-22
However, while NSFAF was demanding its dues from the youthful politician, Katjimune was advancing a debt write-off agenda in the National Assembly.
“NSFAF is now busy harassing graduates to pay back money which they do not have and even threatening to blacklist graduates with the Credit Bureau (ITC). This draconian action by NSFAF has very serious consequences on graduates, particularly when we take into account that the significant majority of our graduates who were funded by NSFAF come from previously disadvantaged backgrounds.
“They are often first time breadwinners in their respective families, that most of them remain unemployed and even those that have found employment are not paid enough to be entrapped in debts such as NSFAF,” Katjimune said in a series of questions directed to higher education minister, Itah Kandjii-Murangi in parliament on Tuesday.
“What happened to the President’s commitment that all NSFAF loans should be converted into grants, and that no student should graduate in debt? Is the government in agreement with the draconian and insensitive position of NSFAF that financial institutions should blacklist graduates who do not pay back their loans?” the youthful politician wanted to know.
Kandjii-Murangi is expected to respond to Katjimune today.
Amnesty
Last year, Geingob announced a one-year interest amnesty for NSFAF loan recipients.
The amnesty ends this month. It remains to be seen if the Presidency will extend it beyond 30 June.
In the meantime, “NSFAF calls on all those owning the institution to use the remaining week to pay their dues so that the funds can be used to assist other needy students the same way they were assisted.”
Tate Mike
What is more, some prominent figures, including lawyers Sisa Namandje and Mbushandje Ntinda have paid back what was due to NSFAF.
Interestingly, from behind bars, former National Fishing Corporation of Namibia CEO and one of the accused in the Fishrot corruption case, Mike Nghipunya has allegedly made arrangements to honour his NSFAF debt.
“He is repaying as we speak. If someone in prison sees the need to pay back, then why not for those who are free and have all the liberties,” an insider asked.