Lesotho Minister of Finance Reveals Lack of Mechanism to Recover Loan Bursary Funds for NMDS Graduates
Lesotho’s Minister of Finance and Development Planning, Dr. Retsélisitsoe Matlanyane, has revealed a significant challenge faced by the government regarding the recovery of Loan Bursary Funds disbursed to citizens under the National Manpower Development Secretariat (NMDS) sponsorship program.
During a recent Senate question-and-answer session, Dr. Matlanyane disclosed that the government currently lacks an effective mechanism to track and recover funds from graduates who have benefited from the NMDS sponsorship. This disclosure followed inquiries from Senator Peete Lesaoana Peete, who sought clarity on the NMDS sponsorship policy and the strategies employed to monitor graduates, especially those working in the private sector.
In her response, Dr. Matlanyane explained that NMDS was not originally designed to facilitate fund recovery. She emphasized that when the program was established, there were no provisions or plans in place to ensure graduates would repay the funds after completing their studies. This gap has made it difficult for the government to track employed graduates, particularly those working in the private sector, and recover the bursary funds as originally intended.
Acknowledging the importance of addressing the issue, Dr. Matlanyane assured the Senate that the government is actively working on developing measures to rectify the situation. She noted that efforts are underway to implement a mechanism that will enable the ministry to effectively track and recover funds from all sponsored graduates, regardless of whether they are employed in the public or private sectors.
This initiative is part of the government’s broader plan to ensure the sustainability of the NMDS sponsorship program and improve the recovery process, ensuring that the funds are reinvested in future education initiatives. Dr. Matlanyane’s statement underscores the government’s commitment to making necessary reforms to strengthen the management of sponsorship funds and guarantee the program’s long-term success.
