GROSS MISAPPROPRIATION IN BANKERS’ PENSION CORPUS
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Bank employees life-long savings in their pension corpus are misappropriated in gross violation of the statutory norms. Glaringly, the unions too, are in “hand in glove” with their managements, resorted to cheat their own retired colleagues who have contributed to the corpus with a fond hope of securing their lives after retirement
IN FURTHERANCE OF THE SETTLEMENT (SIGNED UNDER THE ID ACT) DATED 29th. OCT.1993, BETWEEN THE BANK MANAGEMENTS REPRESENTED BY “IBA” AND THE UNIONS REPRESENTING THE EMPLOYEES – “PENSION REGULATIONS OF 1995” WERE ADOPTED BY ALL THE BANKS. THESE REGULATIONS ARE SIMILAR TO THOSE PREVAILING IN THE RESERVE BANK OF INDIA -WITH THE PRIOR APPROVAL OF THE PARLIAMENT – COUNTRY’S HIGHEST LAW MAKING BODY.
THE PARTIES TO THE ABOVE SETTLEMENT HAVE NO AUTHORITY, WHATSOEVER, TO ALTER / MODIFY THE TERMS / PROVISIONS OF THE SETTLEMENT ALREADY INCORPORATED AS ABOVE, SUBSEQUENTLY AT A LATER DATE WITHOUT THE PRIOR CONSENT OF THE PARLIAMENT.
– THE EMPLOYEES MONTHLY CONTRIBUTIONS GO TOWARDS THEIR PROVIDENT FUND (DEDUCTED FROM OUT OF THEIR SALARIES EVERY MONTH)
– AND WHEREAS, THE EQUAL MATCHING CONTRIBUTIONS OF THE EMPLOYER’S SHARE OF THE PF WOULD BE CREDITED TOWARDS THE EMPLOYEES PENSION CORPUS.
THESE FUNDS ARE TO BE INVESTED IN THE “APPROVED GOVERNMENT SECURITIES” TO MAKE IT SELF-SUFFICIENT FOR SMOOTH SERVICING OF THE SCHEME AS ENVISAGED BY THE SETTLEMENT SIGNED UNDER THE INDUSTRIAL DISPUTES ACT – A STATUTORY PROVISION.
THE RESPONSIBILITY OF MANAGING/SERVICING THE PENSION CORPUS IS VESTED IN THE HANDS OF THE RESPECTIVE BOARDS OF TRUSTEES WITH EQUAL PARTICIPATION FROM THE MANAGEMENT AND THE RECOGNISED UNIONS.
PERPETRATED FRAUDS COMMITTED BY THE BANK MANAGEMENTS IN THE FOLLOWING AREAS IN GROSS VIOLATION OF THE PENSION REGULATIONS (STATUTORY):–
-BY NOT REMITTING THE MANAGEMENTS CONTRIBUTION TO THE PENSION TRUST CORPUS PROMPTLY AS ENVISAGED IN THE REGULATIONS.
– DIVERTING THE CORPUS FUNDS TO PRIVATE INVESTMENT.
– LOSS OF INTEREST FOR THE BELATED PERIOD IS NOT COMPENSATED.
– MISAPPROPRIATION OF CORPUS FUNDS TO TO COVER UP THE BANKS LOSSES (WINDOW DRESSING )
IN SHORT, THE ABOVE TANTAMOUNT TO “EMBEZZLEMENT OF FUNDS” – A CRIMINAL OFFENCE.
IF THE SAME WERE TO BE INDULGED BY ANY ERRING EMPLOYEE, HE/SHE WOULD HAVE BEEN SACKED FROM THE SERVICE MERCILESSLY AS PER THE SERVICE CONDITIONS, BESIDES PROSECUTING HIM/HER UNDER THE I.P.C FOR CRIMINAL BREACH OF TRUST — EVEN FOR A PALTRY AMOUNT OF INVOLVEMENT FOR THAT MATTER!
ON THE SAME LOGIC, ALL THE MEMBERS OF THE PENSION TRUST BOARDS ARE ALSO PUNISHABLE WITHOUT ANY EXCEPTION.
NOTWITHSTANDING THE ABOVE, THE FOLLOWING LATEST EPISODE ALONE, BY ITSELF, SUBSTANTIATES MY ABOVE STATEMENTS BEYOND ANY DOUBT AND STAND AS AN EFFECTIVE TESTIMONY WITH AN OCCULAR PROOF:
In his recent circular letter No.28/34/2017/34 dated 24th. Sept. 2017, the General Secretary of All India Bank Employees Association himself, had cautioned all their nation-wide constituents in all the banks highlighting the following facts viz:
-The Pension Fund of a Bank was invested in a private company in the form of Non-Convertible Secured Debenture-(NCD).
-The same private company was also given huge loans ( around Rs. 14,000 crores ) by that Bank and other Banks. In other words, The Company which was favoured with such a huge loan was also favored with the above investment (NCD) from the Employees Pension Fund.
-This account has become NPA and is one among the 12 major accounts before the National Company Law Tribunal. Obviously, the investment in the Debenture Bond also became a dead investment and NPA.
Consequently, Bank Pension Fund, being a creditor /investor in the NCD bonds has also been advised by the authorities to file its claim with the company which is about to be/already declared insolvent.
Under the circumstances, NEITHER the Banks would realise their dues NOR the Pension Fund would get back their investment in the NCD bonds- leave alone the returns part of it.
All India Bank Retirees Federation – AIBRF, IN ITS CHARTER
OF DEMANDS , VIDE REF:No.2017/67 dtd.15 06 2017
REITERATED ITS STANCE FOR “CAG AUDIT” OF THE
PENSION TRUST CORPUS. (enclosed pages:10&11 as annexure)
– RECENT EPISODE OF PUNJAB NATIONAL BANK WHERE
HUGE FUNDS FROM PENSION CORPUS DIVERTED FOR
WIPING OF THE LOSSES IN THE BANK’S BALANCE SHEET
(WINDOW DRESSING ) vide Lr.dtd. 14.9.17 to RBI (enclosed as annexure)
-RECENT EPISODE OF ORIENTAL BANK OF COMMERCE- AS
ALREADY REPORTED BY OUR CO-RETIREE VIDE HIS LETTERS
Dt.23.12.16, 14.6.17,& 28 08 2017 ADDRESSED TO THE GOVERNOR, RBI WITH OCULAR EVIDENCES. (enclosed as annexure)
-AND FINALLY, THE ABOVE REFERRED TO CIRCULAR LETTER
REF.No.28/34/2017/34 DATED24 09 2017 ADDRESSED TO ITS
CONSTITUENTS IN VARIOUS BANKS, BY THE GENERAL
SECRETARY OF ALL INDIA BANK EMPLOYEES ASSOCIATION –
AIBEA MADE A SPECIFIC REFERENCE TO AN INCIDENT TO
PROVE OUR ABOVE APPREHENSIONS BEYOND ANY DOUBT.
NO MEANINGFUL RESPONSE HAS BEEN FORTHCOMING FROM THE CONCERNED AUTHORITIES TO OUR LETTERS SUPPORTED BY DOCUMENTARY EVIDENCES FROM TIME TO TIME. CAN THEIR LONG SILENCE BE CONSTRUED AS THEIR “TACIT APPROVAL” OF THE ABOVE FACTS?
IN EVERY BANK’S BOARD, NOMINEES FROM THE GOVERNMENT AND RBI PLAY VERY IMPORTANT ROLE. IN FACT, THEY HEAD THE AUDIT COMMITTEES CONSTITUDED BY THE BANKS’ BOARDS. IT’S THE MOST IMPORTANT ASSIGNMENT GIVEN TO THESE NOMINEE- DIRECTORS. CAN ANY BODY BELEIVE THAT THEY ARE NOT AWARE OFF THESE HAPPENINGS??
WHAT IS THEIR ACCOUNTABILITY ? …. FOR THAT MATTER EVEN THE STATUTORY AUDITORS APPOINTED EVERY YEAR BY THE RBI ?
ONLY A THOROUGH INVESTIGATION ON THE ABOVE LINES BY AN ACCREDITED CONSTITUTIONAL AUTHORITY LIKE “CAG” ALONE WILL BE ABLE TO BRING THE TRUTH TO THE SURFACE WITH FULL FACTS AND FIGURES AND DO JUSTICE TO THE JOB ONLY IN THE INTEREST OF ALL THE CONCERNED- INCLUDING THE VAST BANKING PUBLIC.
THIS IS ONLY A “TIP OF THE ICE BERG” MANY MORE SKELETONS WOULD FALL OUT FROM THE CUPBOARDS IF THOROUGHLY INQUIRED INTO BY THE “CAG” THE ONLY CONSTITUTIONAL AUTHORITY WHO CAN RENDER JUSTICE TO THE JOB –
IF THIS WAY, THE BANKS RESORT TO CHEAT THEIR OWN RETIRED EMPLOYEES, WHAT WOULD BE THE FATE OF VAST BANKING PUBLIC?– WHEN THE GOVERNMENT IS CONTEMPLATING TO BRING ABOUT MAJOR REFORMS IN THE BANKING INDUSTRY WITH DIRECT BEARING ON THE VAST BANKING PUBLIC?? — HENCE THE PURPOSE OF THIS WRITE UP OF MINE ASSUMES LOT OF IMPORTANCE
THIS IS A “LITMUS TEST ” TO THE GOVERNMENT TO PROVE ITS CREDIBILITY ONLY TO INFUSE CONFIDENCE IN THE MINDS OF ALL THE CONCERNED INCLUDING THE VAST BANKING PUBLIC.
OUR MEANINGFUL EFFORT TOWARDS PUBLIC AWARENESS IS THE DIRE NEED OF THE HOUR.
BY THIS WAY ALONE WE CAN MAKE THE GOVERNMENT TO ACT SWIFTLY. HENCE, MY EARNEST APPEAL TO MY FRIENDS FROM THE MEDIA FOR PUBLIC AWARENESS
-DEVULAPALLI SRINIVASA MURTI (9989318300/9398532066)