Graduates who owe Moi University more
than half a billion shillings in fee arrears risk being listed with the
Credit Reference Bureaus (CRB) if the institution implements
recommendations of Parliament.
Public Investments
Committee (PIC) says past students owe the university long outstanding
fee balances amounting to Sh547,916,477 as at June 30, 2015.
“This
situation may be indicative of the University’s weak debt management
system which tends to undermine its liquidity position,” Adan Keynan,
who chairs the committee said in the 21st report of the audited books of
accounts of State corporations tabled in Parliament before the House
took recess after the end of its term.
The committee
said the students debts had remained uncollected from the 2009/10
financial year with the amount for the year to June 2015 alone standing
at Sh143,403,095.
“The committee recommends that the
vice chancellor forward the list of fees defaulters for listing by the
Credit Reference Bureau,” Mr Keynan said.
PIC wants the
university chancellor, Prof Mirriam Were, to enforcement policies put
in place to ensure non-accumulation of debts and recovery of the
outstanding debts.
“The committee recommends that the
vice-chancellor collaborates with Kenya Revenue Authority (KRA) to trace
university graduates with debts, partner with other institutions like
National Hospital Insurance Fund (NHIF), National Social Security Fund
(NSSF), National Transport Safety Authority (NTSA), Teachers Service
Commission (TSC) and government Ministries with large databases of
Kenyans who are gainfully employed and use of debt collection agencies
to net defaulters.”
The committee also wants the
university management to review all debts in terms of recoverability and
debt policy in order to make provisions in its accounts where necessary
and seek approval for write-off of uncollectable debts.
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