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BMC LOOKS AT STAFF FUNDS TO FINANCE PROJECTS

Once bitten, but not shy. Faced with a financial crisis, the ruling Shiv Sena in the MCGM is once again eyeing the pension as well as the provident funds of the civic body’s 1.19 lakh employees. The MCGM, up to March 2009, has Rs 13,000 crore in fixed deposits in 32 banks. Shiv Sena leader and two-term standing chairman Ravindra Waikar wants the municipal corporation to break some of these fixed deposits and use the money for infrastructure projects. Asked about the rationale of parking funds in fixed deposits, they have said that it was largely provident and pension funds. A small amount was security deposit given by various contractors when they take up civic work. Following the financial crisis in the 90s during the tenure of the mayor-in-council when all the savings of the BMC were wiped out, including provident and pension funds, the state government had disallowed the BMC from touching any internal funds without its permission. Bureau report – NMTV News.

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