Unraveling the University Fund Scam: Students Charged for Nonexistent Education Loans

HomeNewsUnraveling the University Fund Scam: Students Charged for Nonexistent Education Loans

Unraveling the University Fund Scam: Students Charged for Nonexistent Education Loans

An unknown number of Taita Taveta residents may have fallen prey to a County Education Fund fraud, as reports have surfaced of former students being forced to repay loans that were never issued.

Some residents assert that the county government is deducting funds from their paychecks even though they have never received loans from the university’s revolving fund. From 2013 to 2016, some inhabitants who attended different universities requested education loans.

However, they are now obligated to repay funds that were never actually disbursed by the loan program for their university tuition while they were enrolled.

Former Governor John Mruttu established the Taita Taveta County Education Fund in 2013 to provide financial assistance to county students who desired to pursue higher education.

The purpose of the fund was to assist intelligent, deserving students who lacked the financial resources to continue their education.

The fund is administered on behalf of the county government by the Higher Education Loans Board (Helb). Since its inception, numerous county students have utilized the fund to finance a portion of their education.

However, it has come to light that some students whose loan applications were approved by the board never received the funds.

Rachel Nose, one of the victims, said she applied for the loan in 2016 when she matriculated at Kenyatta University for an undergraduate degree in teaching, but the county government did not respond.

Ms. Nose funded her entire university education out of pocket, oblivious that the loan had been disbursed to another institution.

In July of this year, to her utter astonishment and dismay, she discovered that a Sh4,000 loan repayment had been deducted from her salary. “The pay stub indicates that this is a university loan recovery, and when I checked the Helb portal, I discovered that Taita Taveta County was responsible for the repayment. “I informed Helb that I had applied for the loan, but it never materialized,” she stated.

She also observed the difference between what her pay stub stated she owed and what Helb claimed she owed. Her paystub indicated that she had a Sh49,000 university loan, while Helb stated that it was Sh50,000.

She discovered upon further investigation that the funds had been sent to Daystar University, but that the university has denied receiving funds from the county government.

“Daystar told me that the student the county claimed to have received the money is not from my county, and the money was not transferred to him as claimed,” he said.

Ms. Nose stated that she had also reached out to the county government to rectify the situation, but her petitions fell on deaf ears. The inability of the county government to resolve the issue, according to her, has caused a great deal of frustration and anger among the affected citizens.

They are now requesting reimbursement from the county government for the money deducted from their compensation. “I am now responsible for repaying a debt from which I did not benefit. “I require relief from this unfair burden,” she stated.

She has requested that the Ethics and Anti-Corruption Commission (EACC) investigate the situation and take action against anyone discovered to be complicit in the scheme.

“We also expect that the county government will take steps to reimburse us. “The relevant government agencies must ensure that those responsible are held accountable,” she said.

Lucas Kamu, another former student at Kenyatta University, relates a similar tale. Mr. Kamu, who is now a teacher at St Mary’s Boys Lushangonyi, stated that he applied for a student loan in December 2013 and was told he qualified for Sh30,000; however, he never received the funds.

“In July 2015, the county education fund informed me via email that my loan had been authorized. Before paying the money, they requested that I complete some paperwork. But since I was in my final year and my sister had already paid my tuition, I did not pursue the matter,” he said.

When he visited their offices, he was informed that he owed the county government Sh45,000, which he had borrowed to finance his university education.

According to him, a Helb representative advised him to resolve the issue with the county government to have his name removed from the list.

“I went to the loan offices in July and December, but to my surprise, they deducted Sh4,181 from my account in March of this year. It demonstrates that the money was paid to the University of Nairobi without my presence,” he said.

Mr. Kamu claims that the deductions have imposed an additional financial burden that he had no intention of shouldering. “I have worked diligently to support my family, but now a portion of my salary is being deducted for a loan that I never received. Many of us are affected by this injustice, and we demand answers from the county administration,” he said.

The most recent revelations point to possible misuse of funds and raise concerns about the system’s transparency and accountability.

In the past, the County Education Loans Board has been accused of lacking adequate governance and responsibility. During previous administrations, the board has been accused of malfeasance, depriving deserving students of the intended financial support.

However, the more than ten residents who claim to be victims of the scheme claim that more victims have yet to come forward. Officials from the county have yet to respond to the victims’ claims, leaving them frantic for answers.

“We desire disclosure of the truth and justice. They informed us that they cannot assist us,” said Ms. Dorothy Mwasawa, whose account was debited for Sh36,000 instead of the Sh25,000 intended for Taita Taveta University. She stated that her efforts to receive a refund of the Sh9,000 she paid were futile.

The CEO of the fund, Lawrence Mwakio, stated that they would respond in due time.

“I cannot say at this time, but we will soon issue a statement,” he said. Daniel Kimuyu, the vice-chairman of the education committee of the county assembly, stated that the allegations should be investigated, and those found culpable of embezzling public funds or mismanaging the education fund should face legal repercussions. “We have received the complaints, and the matter will be discussed when we resume sessions,” he stated.

Unraveling the University Fund Scam: Students Charged for Nonexistent Education Loans

MOST READ