SHC asks CS why pensionary benefits not being paid to ex-TMC employees

The Sindh High Court directed the chief secretary on Tuesday to assist it in pensionary matters pertaining to local bodies’ employees, explaining if money is being paid to the Karachi Metropolitan Corporation and town municipal corporations, how it is possible that these entities have no funds for the payment of pensions.

The direction came on petitions of retired local bodies employees of the TMCs of Baldia Town, Mauripur and SITE. The petitioners submitted that they were retired employees of the Baldia Town TMC, but they were not being provided pensionary benefits.

A high court division bench headed by Justice Mohammad Karim Khan Agha observed that it appears from the letter of the finance department that an amount of Rs125 million was paid into the account of TMC Baldia Town on account of the payment of salary, pension, non-salary and development expenditures.

Municipal Commissioner TMC Baldia Town Amjad Ali Pitafi submitted that he did not receive any such amounts at all. The court directed section officer Iqbal Khowaja of the local government department to appear before the court along with the relevant record and file a report on whether or not an amount of around Rs125 million was released to the Baldia Town TMC.

The court observed that the local government officer was being called to explain the position in view of the statement of the TMC counsel, who stated that a letter of the finance department with regard to distribution of funds to various TMCs throughout Karachi was misleading and according to Baldia Town TMC MC he did not receive funds.

The court also directed the chief secretary to appear before the court to assist it in pensionary matters, and to explain in particular if money was being paid by the Sindh government to the KMC and TMCs how it was possible that organizations/entities had no funds for the payment of pensions when millions of rupees had been specifically provided to them.

Mayor Murtaza Wahab also filed a statement in the case submitting that each TMC is responsible to pay monthly pensions to its retired employees; therefore, Baldia TMC is responsible to pay monthly pensions to the petitioners.

He submitted that under the Sindh Local Government Act each town municipal corporation is responsible to establish and maintain a pension fund and provident fund for its employees, and the KMC has no responsibility to pay any dues be it monthly pensions or post-retirement benefits to any retired employees of any TMC under the law.

The mayor said the Sindh government pays a hefty amount to each TMC every month on account of salary, pension, non-salary and development expenditure.