Andhra Pradesh - Vijayawada   

VMC staff jittery over ‘diversion' of Provident Fund amount

VIJAYAWADA: The Vijayawada Municipal Corporation (VMC) is evidently passing through a financial crisis, if the recent developments are any indication. The Corporation employees are agitated over alleged diversion of Provident Fund (PF) amount to other purposes.

The Corporation is believed to have utilised more than Rs. 20 crore of the PF amount collected from its employees for various purposes. The VMC earlier deposited the PF amount for a fixed tenure in the form of term deposits.

On maturity of these deposits, the VMC withdrew the amount and diverted it into general fund to maintain the momentum of developmental works as well as for other purposes.

Natarajan Gulzar noticed the grim state of financial affairs and diversion of PF amount in the VMC during his tenure as Commissioner and tried to bring the situation under control. He initiated a few corrective measures, like recouping of the PF amount that was diverted for other purposes. He instructed the officials to deposit at least Rs.60 lakh every month towards PF amount. Subsequently, PF was augmented considerably.

However, thereafter, the succeeding officials did not give much attention in this regard. The recouping exercise came to a halt, employees say.

The employees further assert that the Corporation is not remitting the amount deducted from them to the Employees Cooperative Bank located near Vijaya Talkies. As a result, they are forced to bear the penal amount for not remitting the loan instalments in time. In another similar financial indiscipline, the VMC did not remit the ESI amount of DWCUA and CMEY groups. The Deputy Commissioner of Labour issued notices to the Corporation in this regards a couple of months ago. It was only after that the Corporation started sending the ESI amount. The Corporation faced problems from the insurance companies too, as it used to deduct the insurance premium of the employees but not remit the same in time.

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