BB1M scams ongoing since 2012

The BB1M scheme, aimed at alleviating tertiary students’ financial burden, has been rampantly abused since it was introduced in 2012, according to MBIC.

“There are two forms of abuse. Firstly, recipients do not use the vouchers to buy books but instead use them on non-academic items like gadgets, clothes and spectacles, among others,” said the chamber’s chairman Ishak Hamzah.

“Secondly, they exchange the voucher for cash.”

On the second matter, Ishak said there are cases where students auction the vouchers online or ‘sell’ them at a discounted rate to vendors registered with BB1M.

This is sometimes facilitated by students acting as ‘agents’ at higher learning institutions, who are paid to collect the vouchers.

Another widely used method is through exhibitions and fairs.

Retailers of all sorts of products will display a signage saying that they accept BB1M vouchers but in fact do not have the permission to do so. Upon receiving the vouchers, they sell them to BB1M registered vendors for a commission.

“There is a clear guideline issued by the Education Ministry on the application of vendors and the disbursement of BB1M. However, the problem of misuse is in the enforcement. It has gotten worse since last year,” Ishak added.

“When there is no control on the ground, vendors simply put up the ‘We accept the BB1M voucher’ signage and then through dishonest methods, cash the money out from the bank. The first week after BB1M 2014 was released, we saw many misuses done so openly, even on university grounds.”

“We are very serious on the issue and have sent all these photos of BB1M misuse to the ministry, including a memorandum.”

A vendor selling spectacles displaying BB1M signage - Photo by MBIC

Since 2012, over RM900 million had been allocated for the BB1M scheme which has benefited more than 3.9 million students in tertiary education, matriculation and Form Six.

Apart from easing students’ financial burden, the scheme is an initiative aimed at cultivating the reading habit among the people and to spur the growth of the book industry.

However, Ishak said the BB1M has setback the industry instead.

“Even if fifty percent of the amount disbursed by the government through BB1M is used correctly - that is if the money are spent on books - the industry will flourish.”

“But what we found out last year was that not only the industry is not expanding, it has declined.”

MBIC represents five book associations including the Malaysian Book Publishers Association (MABOPA), Malaysian Book Exports and Importers Association (MBEIA), Malaysian Booksellers Association (MBA), Malaysian Book Contractors Association (PKBM) and the Malaysian Bumiputera Book Publisher and Distributors Association (PPPBBM).

On the ministry’s response to the issue by prohibiting purchase of reading materials that are non-academic, Ishak said it was not a right move.

“We can’t agree that it has to be for academic books only. As far as we are concerned, a book is a book. How do you define if a book is of academic value or not? For example, you can’t say that a novel is of no academic value because social science students use novels for literature research.”

A statement issued by the ministry on Wednesday said BB1M will only be applicable for the purchase of academic books, journals and magazines effective May 1.

An earlier relaxation on BB1M enabling students to use 20 percent of unused vouchers to purchase goods other than books has also been withdrawn.