Why was a cooperative used for fee collection instead of direct handling?

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Cooperative Used for Fee Collection Despite Potential Financial Disadvantage

A cooperative, Koperasi B-5-1788, operating under the name Koperasi Siswazah Bangi Bhd (KSBB), was utilised for collecting fees for specific postgraduate programmes at Universiti Kebangsaan Malaysia (UKM). This arrangement, initiated in 2017, generated RM90.56 million in revenue. However, an audit revealed that UKM was consequently shortchanged by approximately RM50 million.
Background of University Fee Collection Models

In Malaysia, public universities typically handle fee collection directly through their internal finance departments. This direct approach ensures that all funds are channelled immediately to the university's accounts, facilitating better financial management and control. The use of external entities, such as cooperatives, for fee collection is not the standard operational model for most public higher education institutions.
The Partnership with KSBB

The partnership between UKM and KSBB for fee collection, specifically for the Master of Education (SPEND) and Postgraduate Diploma in Education (DPLI) programmes, commenced in 2017. Payments for these programmes were sourced from the National Higher Education Fund Corporation (PTPTN) and the Employees’ Provident Fund (EPF). While the exact contractual terms and rationale for establishing this specific partnership remain unclear from the information available, the Auditor-General's Report 1/2026 highlighted significant financial discrepancies arising from this arrangement.
Shift Towards Direct Fee Collection

Following the findings of the audit report, UKM has begun to transition away from using KSBB for fee collection. The university has initiated a phased approach to collect fees directly, a process that commenced in the previous year. This marks a significant change in operational procedure for the affected postgraduate programmes, moving towards a more conventional model of direct financial management by the university itself.

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Why was a cooperative used for fee collection instead of direct handling?

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