Home News Senate Committee against moving Scholarship Fund to banks
News

Senate Committee against moving Scholarship Fund to banks

Share
Senator Stukie Motsa chaired the Senate Portfolio Committee. (Courtesy pic)
Share

MBABANE – A recommendation that government scholarship function should remain under the Ministry of Labour and Social Security has been made by the Senate Portfolio Committee of the ministry, chaired by Senator Stukie Motsa.

This recommendation follows the committee’s findings that housing the scholarship function within a financial institution may compromise equitable access to funding, particularly for students from disadvantaged backgrounds.

The committee noted that such institutions are primarily driven by financial viability and may impose stringent lending conditions.

It further observed that this shift risks prioritising loan recovery over access to education, potentially excluding deserving but financially vulnerable students.

In making its recommendation, the committee emphasised that retaining the function under the ministry would ensure that access to funding is guided by principles of equity and social development rather than commercial considerations.

In addition, the committee recommended that the ministry should explore ways of depositing collected scholarship funds into an independent account rather than the Consolidated Fund. It was brought to the ministry’s attention that this approach would ensure the funds are ring-fenced, transparently managed and readily available to revolve and support new students in need of scholarships.

In response, the ministry stated that its strategy is indeed to revolve recovered funds, hence ongoing efforts to establish a semi-autonomous entity.

It highlighted that these efforts are currently on hold while the ministry works in collaboration with the Ministry of Finance.

Furthermore, the ministry has engaged the Office of the Attorney General for guidance on establishing the semi-autonomous scholarship model.

The ministry was also urged to develop strategies for the recovery of funds from beneficiaries residing and working outside the country who still owe scholarship repayments.

In response, the ministry explained that it collaborates with the Ministry of Public Service, particularly in cases where employees formally communicate their intention to leave service. Through the Treasury Department and the Public Service Pensions Fund, outstanding grants are then recovered before their departure.

However, the ministry acknowledged that recovery becomes challenging when officers leave without reporting their departure.

It added that the Ministry of Foreign Affairs and International Cooperation is working on regulating the exodus of emaSwati.

Nevertheless, the Ministry of Home Affairs and other stakeholders will need to be engaged to strengthen efforts in recovering outstanding funds.

An analysis for the past financial year, up to the third quarter, indicates that a gross total of E57 083 843.12 was collected during the reporting period from three government collection points.

*Full article available on Pressreader*  

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss

‘Cat’ Matlala ID saga: Home Affairs official dismissed

MBABANE – Nonhlanhla Malambe, the Home Affairs official found guilty over the issuance of Eswatini national documents to Vusimuzi ‘Cat’ Matlala, has been...

 MaMkhize absent as Eswatini team suffer 2nd  defeat

NHLANGANO – Mbabane Highlanders AM suffered another painful defeat without President Shauwn ‘MaMkhize’ Mkhize in the stands, as Nsingizini Hotspurs edged them 1-0...

Ex-magistrate, another allegedly disobey court orders

MBABANE – Jail time has been sought for former Magistrate Dumisani Magagula and an individual with whom he is alleged to have disobeyed...

10-litre container of drugs allegedly found with clinic guard

VUVULANE – Community members reportedly recovered a 10-litre container of medication from a security guard at Vuvulane Rural Clinic, raising concerns of theft....

Indlovukazi arrives in UAE for official visit

Her Majesty Indlovukazi has arrived safely in the United Arab Emirates (UAE) where she is on an official visit. Her Majesty arrived around...

Related Articles

Mpakeni Dam firm in E1.2bn bribery case

MBABANE – The company contracted to build the Mpakeni Dam through a...

King calls for universities in all 4 regions

KWALUSENI – His Majesty King Mswati III has called for more universities...

Unpaid inhlawulo sparks burial tug-of-war

Mbabane – A family dispute over the repatriation of a liSwati who...

Lavumisa town plans 354-hectare industrial park- CEO Seyama

MBABANE – Lavumisa Town Board is pursuing plans for a 354-hectare industrial...