Finance minister Ipumbu Shiimi says patriotic Namibians who benefited from the Namibia Students Financial Assistance Fund (NSFAF) should repay their loans as it is “the right thing to do”.

The minister paused during his 2021/22 mid-year budget review to discuss NSFAF loan repayments, currently a hot topic in Namibia.

Namibians are divided on repaying NSFAF loans. There is a group, including those leading NSFAF, that feel the loans must be repaid in order for the fund to become self-sustaining.

Another group exists that argues that due to lack of accountability at the fund, lost records and outright theft, they are not repaying the loans, while others maintain they are unemployed and therefore, are unable to pay back.

However, Shiimi is adamant that the money must be paid back.

“I implore all previous NSFAF beneficiaries, as upstanding citizens, to support and cooperate with the fund to repay outstanding debts and ensure financial sustainability going forward,” he pleaded.

According to him, refusing to pay back is an unpatriotic act.

“Refusing to pay back when earning a decent income – some are even driving expensive cars – is morally abhorrent, it is unpatriotic and can be equated to stealing the future of the youth of today,” he charged.

So far, NSFAF undertook a means-testing exercise on parental income to ensure that funding is dedicated to eligible needy students.

In addition, the fund has resolved to name and shame all defaulters in local newspapers.

Meanwhile, speaking to Nampa shortly after Shiimi’s speech, Rally for Democracy and Progress leader Mike Kavekotora agreed with the Treasury boss, saying NSFAF “must become a revolving fund.”

“I agree that NSFAF should have been a revolving fund. But I think the way they kept their books and records and spent the money is questionable,” said Kavekotora.

Having chaired the Parliamentary Standing Committee on Public Accounts in the past, Kavekotora is sceptical that NSFAF has the ability to go after every defaulter in the absence of a solid database.

“NSFAF has the ability to trace the people they are claiming to recover money from because that is the bone of contention,” he said.

He also noted that those who ran the fund into the ground through mismanagement, must be taken to task.

“There is a possibility of corruption at NSFAF. When records are not kept properly, that is a breeding ground for corruption.”

Source: The Namibian Press Agency