Friday, June 29, 2012

Govt collects over Rs 400-cr welfare cess, spends just Rs 5.62 cr on labourers

Chandigarh Tribune: Gurgaon: Friday, June 29, 2012.
The manner in which the state government is spending the money collected for the welfare of construction labourers suggests a large-scale bungling in the allocation of funds.
Under the Workers’ Welfare Cess Act, 1996, all employers, including public sector undertakings, are liable to pay 1 per cent of the cost of construction (excluding the cost of land) incurred on the project.
As per its own admission in response to an RTI query, the government has collected more than Rs 400 crore as cess meant for the welfare of construction labourers. However, a miniscule portion of this amount has been spent on the welfare of workers.
Labour Department offices at district headquarters notwithstanding, 19 NGOs were roped in for registration of labourers and given Rs 25.14 lakh for their services.
Curiously, more than half of the said amount was given to four NGOs of Sonepat district alone. One of these NGOs, engaged for workers’ registration at Sonepat, got Rs 10.41 lakh. The other NGOs of Sonepat were employed for Rohtak, Jhajjar and Panipat districts.
“In response to my RTI query on the profiles/experience of the NGOs selected for the job, the authorities maintained that the relevant file was destroyed in fire,” said Subhash, state coordinator of the Haryana Soochna Adhikar Manch.
Moreover, while the department/board concerned states that nearly 6,000 labourers had benefited from the scheme, it has not been able to provide district-wise lists of beneficiaries/labourers registered under the scheme.
It is pertinent to mention here that even the Comptroller and Auditor-General of India (CAG) had slammed the Haryana Government for not spending the funds meant for the welfare of building and other construction workers.
As per a recent CAG report, the Haryana Building and Other Construction Workers Welfare Board had received Rs 383.70 crore from government departments and public sector undertakings as proceeds of cess from 2007 to February, 2011.
However, the department spent only Rs 5.62 crore on welfare schemes while the balance amount of Rs 376.98 crore, besides interest of Rs 17.24 crore earned on bank deposits during 2007-10, was lying unutilised.
The amount so collected was to be spent for the welfare of construction workers under schemes on maternity benefits, pension, advances for purchase of construction of houses, disability pension, loans for tools, payment of funeral assistance, death benefits, medical assistance, financial assistance for education and marriage of children etc.
The construction workers who registered themselves were required to contribute Rs 5 per month per head to become eligible for availing these benefits.