November 30th, 2016
When the entire nation is reeling under the effects of demonetization, another news of a scam hit the headlines. This time, the place is Bengaluru and the organisation in question is the Bruhat Bengaluru Mahanagara Palike (BBMP).
The Bruhat Bengaluru Mahanagara Palike, which happens to be Bengaluru’s civic body, has allegedly misused a fund of Rs 934 crore in the disguise of paying 6,600 non-existent workers. They have been accused of doing this for the past ten years. Moreover, they didn’t credit the shareable amount towards Insurance and Provident Fund in the account of the existing employees.
The Karnataka State Commission for Safai Karmcharis (KSCSK) produced a detailed report of this scam earlier this month. The Home Department has ordered for a thorough enquiry based on the report. The report named a total of 87 contractors and government officials who worked as a part of the city’s waste management program.
The next move?
In a letter addressed to the top cop on 11th November, G Parameshwara, the Home Minister of Karnataka stated that his department is taking the report into cognizance and said that the CID would probe into the matter as “an independent agency.” Former President of the KSCSK, Narayana, spoke about the misappropriation of funds and ill treatment towards the workers in the letter, claimed the Home Department.
“Since 2005, salaries were being disbursed for pourakarmikas (workers), but without all the components of employer’s contribution towards insurance and PF. Employee’s contribution to ESI [insurance] of 1.75 per cent and employer’s contribution of 4.75 per cent should have been credited to their insurance accounts. But these funds have not been credited,” he said as reported by Bangalore Mirror.
The workers were allegedly cheated approximately of Rs 384 crore by the contractors. There was no ESI coverage for them either, and as a result, the workers lost coverage of Rs 15 crore. Narayana also said, “The BBMP is paying salaries to over 19,000 workers. But, as per our survey, only 12,400 are into cleaning activities. Bogus documents have been created for the remaining 6,600 ‘employees’ and salaries are being paid to them for over ten years.”