December 19, 2009
By Irfan Aligi
KARACHI: City District Government Karachi (CDGK) has come under worst financial crunch worth Rs 1.5 billion owing to short releases of certain pecuniary amounts such as the Single Line transfer Funds (SLTF) and Octroi and Zilla Tax (OZT) from provincial Sindh government. Sources in CDGK Finance and Recovery Department (FRD) said.
According to sources, CDGK FRD has been struggling to gather necessary funds so as to disburse CDGK employees’ salaries and perks on time. Presently, the FRD needs Rs 210 million to diligently meet the target.
The financial deficit has reached Rs 2.5 billion, which got worsened after Sindh government had imposed ban on lease.
The decision had prevented CDGK to earn hefty revenue through auctioning of certain established projects such as Saddar Car Parking Plaza, which has cost CDGK Rs around 860 million and collectively the fee of CDGK contractors worth Rs 1 billion has also been delayed due to lack of funds at hand.
The retrenchments as regards to decreased release of funds in terms of OZT have caused CDGK suffer a colossal loss of Rs 1.5 billion. Conversely, CDGK had no alternate resources for generation of revenue except earning money from lease works.
The SLTF and OZT pecuniary releases were linked to National Finance Commission for three years. However, induction of more than 20, 000 citizens as employees also gave a bump in CDGK’s existing funds.
City Nazim Syed Mustafa Kamal had recently claimed that the CDGK had an acute shortfall of Rs 350 million due to which CDGK employees could not receive Eid salaries in advance and Bonus was also pending with the CDGK.
City Nazim had also regretted paucity of funds that prevented cash awards worth Rs 5,000 to low-cadre employees of pay scale 1 to 5 for lifting, dumping and burying the sacrificial animals’ offal on three consecutive days of Eid Ul Adha this year.
According to CDGK FRD sources, the devolved portion of CDGK consisted of two major components including the defunct KMC and the defunct KDA.
The defunct KMC portion’s Salaries were Rs 320 million in past but after 20 percent increases in pay and pension of the employees and induction of 20,000 employees has increased the liability to Rs 400 million.
The salaries of the defunct KDA employees have also jumped from Rs 90 million to Rs 110 million.
Twenty percent increases in pay has resulted in increased liability of Rs 60.4 million for the defunct KMC portion while Rs 90 million liability has also been added in terms of pension for both the defunct KMC and the defunct KDA portions.
It is pertinent to mention that disbursement of CDGK employees’ salaries has been almost one month late.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment