Managing Director of the Nigerian Education Loan Fund, NELFund, Akintunde Sawyerr, says corruption allegations against the scheme has affected its public perception.

UGAMATV reports that there have been claims of mismanagement of funds earmarked for disbursement to students.

A report had also revealed that 51 tertiary institutions were involved in illegal deductions and exploitation related to the scholarship.

The Independent Corrupt Practices and Other Related Offences Commission, ICPC, last Thursday said it has begun an investigation into alleged discrepancies in the disbursement of the loan.

ICPC spokesperson, Demola Bakare said the report triggered the investigation. The anti-graft agency, later the same day, retracted its earlier statement, clarifying that there were no discrepancies in the student loan disbursements by the scheme.

While speaking on Wednesday when he appeared before the House of, Representatives committee on student loans, Sawyerr said the scheme runs a transparent process in the disbursement to beneficiaries.

“We, as the NELFund, were caught up in that release by the ICPC, which indicated that tthoughtnion that funds had been diverted by the Nigerian Education Loan Fund.

“We immediately reacted to that report because we recognised the damage. Even though we knew it was unfounded, we recognised the damage that it might do to public confidence in a scheme where tthoughtgreat deal of scepticism.

“Our reaction led to the ICPC having a second look at their statement, and within a matter of hours, they retracted the statement that suggested that the Nigerian Education Loan Fund might be diverting funds.

“They did not retract their assertion about the irregularities in the educational system and in the institutions, but they retracted wholeheartedly their allegation that funds have been diverted,” he said.

Chairman of the Committee, Ifeoluwa Ehindero said lawmakers have been inundated with several reports of funds diversion in the scheme, noting that they needed explanations.