NDA Minister’s Largesse Lands EPFO In Trouble

YET another scam of the previous NDA government is tumbling out of the closet. The EPF organisation had incurred an expenditure of Rs 7.55 crore during 2002-03 and Rs 10.08 crore during 2003-04 under the administrative fund. These were the years when huge expenditure was incurred in the name of golden jubilee of EPFO.  Its impact is being felt now as the budget provision for 2004-05 is only Rs 2.53 crore. To pay for the EPFO golden jubilee expenses it is proposed to further hike in the revised estimates. 

The reason for the EPFO landing in this mess is the largesse indulged in by Sahib Singh Verma, the then labour minister in the NDA regime. Disregarding the norms, the ministry released advertisements through private advertising agencies instead of the I&B ministry’s DAVP and directed EPFO (as well as the ESI Corporation) to foot the bills!

The two handpicked agencies chosen by Sahib Singh Verma for release of advertisements running into several lakhs of rupees are: M/s Rashtriya Advertising Agency  and M/s Ankur Advertising Agency. These agencies have submitted bills for a total sum of Rs 24,40,360.50, which are pending.

The occasions for which the release of advertisement relates to are:

1. 39th Session of India Labour Conference

2. Best Employer Award for the year 2003

3. Stone laying ceremony for Samajik Suraksha Bhawan at Dwaraka in Delhi

4. Five years achievements of EPFO

5. Unorganised Sector Workers Social Security Scheme

Excepting 3 and 4 of the above, other occasions do no relate to the EPFO.

There is a directive that all advertisements need to be issued only through DAVP. The labour ministry had issued the order for release of advertisement on the ‘39th Session of India Labour Conference’ first through DAVP on October 13, 2003. But, it is learnt Sahib Singh Verma got the order cancelled on October 15 and the advertisements were issued to the two private agencies, which were the recipients of further orders on the other four occasions also. Regularising this cronyism was the next thing done by Sahib Singh Verma. For this, he used his capacity as chairman of CBT and granted relaxation regularising the release of advertisements through private agencies.

To push through this game plan, Sahib Singh Verma also pressurised the CBT and EPF to delegate powers to him as the chairman of CBT and to the CPFC for sanctioning advertisements through private agencies up to certain specified limits. But, there was a catch in that too, which perhaps he did not notice. The delegation of power was subject to concurrence of internal finance of EPFO.

However, the internal finance had observed that the administrative fund of EPF can be utilised only for expenses in connection with the EPF Act and the three schemes framed thereunder. The EPF Scheme also does not provide for incurring expenditure to items of work not related to the administration of the EPF fund.

It is learnt that now the EPFO is approaching CBT to sanction an expenditure of Rs 16,03,652.00 besides sending out a request to ESIC to cough up Rs 8,03,981.00 towards these advertisements. 

(INN)