The Employees Old-Age Benefits Institution (EOBI) has decided to invest in real estate to generate funds for establishing the organisation on sound footing.
This was disclosed by EOBI chairman Mohammed Shafi Malik while addressing members of the Faisalabad Chamber of Commerce and Industry here on Saturday.
He said that the institution earned Rs 1055.912 million in capital gains and dividend as compared to Rs 364.241 million in the last year showing an increase of Rs 690.671 million.
Talking about the "Repo Deal Scam", he said a recovery of Rs 903.281 million was made comprising of cash, shares, two cards of KSE, urban and agricultural properties.
Besides these, control/ownership of a leading company has also been secured. All the properties except one have already been sold, he added.
The EOBI chairman said that the contribution collection target for the institution was fixed at Rs 2.235 billion.
It was revised upward by 15 percent raising to Rs 2.57 billion. The actual collection of Rs 2.68 billion exceeded the original target by 19 percent and revised target by 4.19 percent.
It has shown an increase of 14 percent as compared to collection of the proceeding year.
Giving details, the EOBI chairman said that the organisation has witnessed highest increase in all activities during the year 2002-03. The registration of employers during the year 2003-04 has decreased from 3386 to 2935 showing a decline of 13 percent.
The registration based on sound evidence has reduced appeals and increased compliance. Where the employers have been confronted with the evidence and requirements of law, in most of cases they have accepted the liability.
As a result, the rate of institution of appeals against registration has declined considerably, he added.
The chairman claimed that it is an indicator of success of the fair and transparent evidence based on operational management system.
He mentioned that the registration of employees has shown an increase of 14 percent despite decline in the number of registration of new employers by 13 percent, which reveals that the coverage of employees has been increased through mutual understanding and co-operation of employers and employees under the umbrella of Self-Assessment and Self-Registration schemes and deterrence of strong checking plans based on sound evidence, he added.
The chairman said that the payment of benefits has increased from Rs 1591.653 million to Rs 1743.616 million yielding an increase of 10 percent as against 17 percent in the preceding year.
He said that arrears as a result of two year's efforts were reduced from Rs 1731.021 million to Rs 1133.253 million through remission and recovery showing a reduction of 34.53 percent.
The public sector arrears standing at Rs 850.081 million at the close of 2002 had been reduced to Rs 485.299 million by effecting recovery and remission of Rs 364.782 million.
Talking about the recovery of arrears from public sector companies, he said that the institution faced major difficulty in recovery of arrears from public sector companies/organisation.
The Punjab government, realising its obligation towards the retiring/ex-employees of PRTC, paid a sum of Rs 179.168 million, while the statutory increase of Rs 89.58 million is still outstanding.
The Pakistan Steel Mills after resolution of dispute by the law division has cleared its arrears and has paid about 50 percent of its statutory increase.
The OGDCL after settlement of its liability has paid the full amount of Rs 46.12 million. The PMDC after a fair and judicious order of the board's appellate committee has paid a sum of Rs 1.44 million and the remaining amount will be paid in instalments after determination of actual dues.
Long outstanding dispute of the KESC was resolved at the company's management and zones level. The credit goes to the enlightened management of KESC and the leadership of Brigadier Tariq Saddozai.
The company has paid a sum of Rs 60.25 million. The remaining amount is being paid in monthly regular instalments.
In the case Of Punjmin the long outstanding dispute has been resolved by the appellate committee of the board by passing order under Section 35 after conducting hearing on the spot.
They have paid an amount of Rs 0.97 million and balance amount will be paid in monthly instalments after determination of actual dues, he added.
He said that a sum of Rs 1.55 million has been paid in the case of Northern Areas Co-operative Bank.
The institution's request for settlement of issue was responded positively by the administration of Northern Areas. Meeting of the finance secretary at Karachi and interaction of the local EOBI officer resulted in the recovery of Rs 1.50 million and withdrawal of case filed by the bank.
Despite vigorous efforts by the EOBI and series of meetings, the Sindh government, which acquired assets of the Karachi Transport Corporation after its winding up, has yet not made payment of arrears.
The EOBI despite great stress on its resources is paying pension to 660 retired employees of the KTC. He hoped that the Sindh government, by following the Government of Punjab, will also protect its pensioners and eligible retiring employees of the4 KTC.
M/s Karachi Shipyard & Engineering Works despite written order of instalments could not pay their liability on account of non-release of their funds by the Ministry of Defence. The institution is paying monthly pension of Rs 1.64 million to its 1492 employees.
A sum of Rs 1.42 million was due against the National Construction Limited. After exchange of correspondence at the ministry level, the new management of the NCL and the NCCP have accepted their liability and it is hoped that they would make payment within this month, he added.
The chairman said that the concept of social protection of the EOBI is nearest to Islam and industrialists should adopt this concept taking it as a religious obligation.
He said that the task of disbursing pension would be assigned to the HBL and UBL in near future.
However, where there is no branch of any of these two banks, post offices would be asked to perform this duty.