PAC informed: EOBI fails to recover Rs 1.36 billion dues against employees: AGP

The Employees' Old-age Benefits Institution (EOBI) has failed to recover Rs 1.36 billion outstanding against thousands of employees since 2009, Accountant General Pakistan (AGP) officials revealed to a parliamentary panel. Briefing a subcommittee of the Public Accounts Committee of the Parliament, which met here under the chairmanship of Sardar Ashiq Hussain Gopang, the AGP officials said out of 39,221 employees of EOBI, 6,946 employees are defaulters of the company. The audit officials said that this amount is of 2006-09.
According to audit documents in EOBI, 6,946 active employers out of a total of 39,221 all over Pakistan defaulted in paying contributions to the Institution during the period from July 2006 to March 2009. The amount involved in the default period accumulated to Rs 1.364 billion as on June 30, 2009. Accumulation of heavy amount of dues indicated unsatisfactory performance of regional offices as well as weak and ineffective controls exercised by the management. The audit officials also informed the meeting that Overseas Pakistanis Foundation (OPF) awarded Rs 2.4 billion land development contract to military controlled Frontier Works Organization in violations of the set rules and regulations. Bringing the panel on the subject, Secretary Ministry of Overseas Pakistanis, Mohammad Hashim Popalzai said that the scheme was launched in 1994 and since then it was kept on delaying due to court cases and other controversies. He said now the matter has been taken up by the Prime Minister Inspection Commission to probe all the irregularities. The committee directed the officials to share all the findings of the probe with the panel members.
Responding to audit objections, Chairman EOBI Khaqan Murtaza said that all the record of the payments is available with the institute for which the organization will acquire vouchers from the National Bank of Bank (NBP), adding that the outstanding amount is old and therefore full recovery of the amount is not expected. The chairman also said if the organization takes stern action against the defaulters, they go to court and come back with stay orders and as a result, the authorities are unable to take stern action, adding that however the authorities are making all-out efforts to recover as much amount as possible. The panel was informed that the matter was discussed in the Departmental Accounts Committee (DAC) meeting held on December 12, 2009. The management informed that the dues were basically not arrears but pertained to the period of last two to three months, which were normally received in due course of time; and they had already taken recovery action. Audit pointed out that outstanding amount included certain arrears pertaining to July 2006 onwards. The DAC directed the management to pursue recoveries and furnish progress of recovery to Audit.
Again DAC in 2011 decided that audit should verify recoveries already made with EOBI identifying active and inactive registered employees and after one month, inactive employees should be certified by a member of the board of directors as retired employee after completing procedural formalities. The EOBI shall, thereafter, deregister these employees and make efforts to recover dues and if necessary would initiate legal proceedings. The audit document said that defaulters and default amount vary form year to year as active default employees were 5,546 but now the number stands at 3,792, default retired employees were 2,137 in 2009 which now stand at 2,522 and default de-registered employees were 23 now.
Moreover, out of total outstanding amount of Rs 1.3 billion against 6,343 employees, an amount of Rs 612.720 million is outstanding against 2,551 retired and dc-registered employees respectively with little chances of recovery. The officials said that only Rs 656.66 million are actually recoverable from 3,792 default active employees. Continuous efforts arc being made for the recovery of balance amount of Rs 656.659 million from 3,792 active employees. The Audit apprised the committee that out of 39,221 active employers, 6,946 were defaulters from July 2006 to March 2009. The amount involved in default period accumulated to Rs 1.364 billion by June 30, 2009. Accumulation of heavy amount of dues indicates unsatisfactory performance of regional offices as well as weak internal control of the management. The management replied that amount of Rs 95.21 million has been recovered out of Rs 1.364 billion.
The panel also sought the record of all the Pakistanis languishing in jails of Saudi Arabia and other Middle East countries. Member Committee Sheikh Rohail Asghar of ruling Pakistan Muslim League asked how many Pakistanis are arrested in Saudi jails and who is going to meet them over there.
Senator Azam Swati of Pakistan Tehreek-e-Insaf said that overseas Pakistanis in reality are running the matters of national economy by sending foreign exchange. He said that the government must take all steps in facilitating the overseas Pakistanis.