KMC lacks funds even to pay salaries, says administrator

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KMC Administrator Muhammad Hussain Syed has said the statement of provincial minister for local government regarding release of monthly funds to KMC was not based on facts and the truth was that the KMC was presently facing acute financial crisis as it could barely be able to disburse the November salary of employees in KMC and salary for the month of December was also due.
He said they did not have money to pay salaries to employees and in this connection it had been repeated many a times that the finance ministry of government of Sindh only provided Rs 320 million and 86 lacs each month in the head of share of Octroi Zila Tax for payment of salaries to the KMC employees whereas a sum of Rs 900 million every month was required by KMC for payment of monthly salaries and pension of employees.
He said KMC used to meet its expenditures with the income from Octroi and at the time of withholding of Octroi tax an increase of two and a half percent was made under the head of general sales tax and it was decided to give 60 percent of the income generated in this head to KMC. KMC was not provided with the amount of funds in accordance with the formula that had been worked out in this connection and instead the property tax was also taken from us and the all the new schemes of former KDA were also shifted to the Lyari Development Authority and Malir Development Authority.
Moreover, the provincial finance commission award was ended on June 30, 2011, and no further meeting of the award or decision in this regard was taken. As a result KMC received only a meager amount from the provincial finance ministry.
He said the government had also announced increase in the salaries on many occasions which comes to 200 percent. KMC also pay pensions to the retired employees of KMC and 18 towns besides paying salaries to its regular employees.
Administrator Karachi said it was also wrong that KMC was paying to contractors from the funds it received from Sindh Government. He said the employees’ salaries were disbursed first and only after than payments for other essential works were made.
He said the employees of KMC have hard time due to nonpayment of their salaries. If the finance department release the due share of KMC each month on a timely basis the employees could get their salaries on time.

2 COMMENTS

  1. DEAR SIR ADMINISTRATOR SAHIB PLEASE SEND MONEY IN PENSION ACCOUNT WE ARE FACEING MANY PROBLEMS IN OUR FAMILIES, OLD MAN AND WOMEN , COMES AND BANK HBL MUSLIM TOWN NORTH KARACHI BRANCH 'S STAFF SAID THEM PENSION IS CLOSED, WE ARE HAVING THIS PROBLEM SINCE 1 OR 2 YEARS. WOMENS ARE WEEPING AND ABUSE TO STAFF. BECAUSE THEY DEPEND ON IT. PLEASE TAKE STICK ACTION AGAINEST BANK OR PENSION DEPT. AS SOON AS POSIBLE. SO KIND OF YOU. PLEASE ASSANYYAN PADA KARYAAY TARIQ JAWED

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