CAG raps EPFO for slow recovery, legal lethargy
The performance audit by CAG comes following a rise in arrears and interest dues, which has lowered the fund’s ability to pay higher interest to its 4.5 crore subscribers. Due to paucity of funds in 2011-12, EPFO paid 8.25% interest as against 9.5% in the previous year.
“CAG is conducting a performance audit on EPFO. Discussions are on. In the interim report, CAG has pointed out some discrepancies,” an EPFO official told FE.
While CAG’s office declined to divulge any details, EPFO officials admitted to lapses for various reasons including shortage of manpower in some offices.
In its interim report, CAG has pointed out that field officers don’t take prompt action in collecting fines awarded by courts.
The CAG has also pointed out that there is considerable delay in filing criminal cases in instances where contributions deducted from wages of employees are not remitted to the statutory account by the employer. The CAG audit found that delays in initiating appropriate legal proceedings by EPFO impacts the timely collection of dues.
Highlighting the concerns raised by CAG, EPFO has issued a circular asking all regional offices to be “careful in monitoring court cases, their disposal and prompt collection of fines wherever awarded”.
To avoid delays, EPFO has also asked its officers looking into compliance issues to file police
Be the first to comment.