KSBB manager Hafiz Saad said all collections since the partnership began in 2017 had been managed and channelled to UKM in accordance with the agreement, generating RM90.56 million in revenue.
In a statement today, he said collections for the master of education (SPEND) and postgraduate diploma in education (DPLI) complied with signed agreements, including approvals by the university’s management meeting, senate, standing finance committee and UKM’s legal adviser’s office.
On the finance minister’s approval of the agreement, as required under UKM’s constitution, Hafiz said it was the university’s responsibility as the provider of the documents, and that it should have been addressed in the initial 2017 agreement.
He said fee payments were remitted to UKM only after students had settled their full semester fees, with the instalment scheme having been agreed upon by the university from the outset.
Regarding arrears, Hafiz said the cooperative had actively managed claims since October 2025, and that UKM announced that its outstanding debt had been reduced to RM3.49 million as of Jan 14, 2026, from RM5.32 million on Dec 31, 2024.
He said further reviews were ongoing to reconcile student records involving withdrawals, dismissals or deaths, and that KSBB pledged its full cooperation to resolve any remaining balances transparently.
Addressing allegations of conflicts of interest, Hafiz said the five UKM officers on the cooperative’s board have no authority over university administrative or financial decisions related to KSBB, and were prepared to resign if they did not obtain approval from their respective department heads.
He said KSBB remained committed to good governance and would not hesitate to pursue legal action against false or defamatory claims, particularly on social media.
Yesterday, UKM said it would take disciplinary and legal action based on the outcome of a full investigation, following the report’s tabling in the Dewan Rakyat.
The report found serious irregularities and governance breaches in UKM’s student fee collection and expenditure management that did not comply with legal and financial regulations.
It stated that the collection of RM50.74 million in student fees by KSBB, identified in the report as Koperasi B-5-1788, for the SPEND and DPLI programmes was deemed invalid.
According to the report, the agreement signed on June 15, 2023 between UKM and the cooperative for SPEND and DPLI was invalid, as they did not obtain approval from the finance minister as required under the UKM constitution.
It said the agreement was only approved at the university management meeting level and signed by a former UKM vice-chancellor, who did not have the authority under the constitution to approve such agreements.
It also found that conflicts of interest existed in the management of the SPEND and DPLI programmes, where the five UKM officers held key positions in the cooperative, including chairman, secretary, treasurer and board member.