Tanzanian government orders universities to payback ‘ghost’ loans


Fifteen universities in Tanzania have started paying back billions of shillings that were issued as loans to ghost students by the government of Tanzania reports The Citizen.

At least 31 higher learning institutions in the East African nation were ordered by the government earlier this month to return a total of 3.8 billion shillings (1,740,172 million US dollars) paid to students that cannot be traced down.

The Minister of Education, Science, Technology and Vocational Training, Prof Joyce Ndalichako gave a directive on August 17th to 31 universities in Tanzania to take up to seven days to recover and return money paid to at least 2,192 phantom students in 2015/16. The ultimatum expired last Tuesday.

“Following the minister’s directive, the government has begun receiving money paid to students whose existence has not been ascertained,” Deputy Permanent Secretary Simon Msanjila told The Citizen

According to Msanjila, the ministry was confident that the entire sum will be recovered and issued to deserving students.

81 higher learning institutions were investigated by the Higher Education Students Loans Board (HESLB) and Prevention and Combating of Corruption Bureau.