MPs to meet labour minister over EPF rates

In a first-of-its-kind exercise, a group of Members of Parliament will meet new Labour Minister K Chandrasekhara Rao on Tuesday to discuss allegations of corruption and mismanagement in the Employees Provident Fund Organisation (EPFO).

Against the backdrop of charges of "utter corruption" and gross mismanagement in the EPFO levelled by the Communist Party of India's (CPI's) trade union wing, All India Trade Union Congress (AITUC), the meeting between the minister and the members of the parliamentary committee of the labour ministry has been convened to "exclusively" discuss its functioning.

The decision to hold the meeting was taken by Sis Ram Ola, when he was the labour minister in the present government, following suggestions by the committee members, official sources said. They added Ola had directed all the regional provident fund commissioners to be present at the meeting.

The decision comes in the wake of allegations that the EPFO was shielding big defaulters, mainly central Public Sector Units (PSUs). AITUC General Secretary and MP Gurudas Dasgupta had alleged: "The EPFO does not function and there is utter corruption since enforcement is marginal and coverage less."

The meeting assumes importance in the backdrop of unions questioning the veracity of the projected accounts of the Central Board of Trustees, which had said it would not be in a position to offer any interest over 8 per cent against the demand for restoration of 9.5 per cent on EPF.

The board had recommended an interim 8.5 per cent interest for the over 40 million EPF beneficiaries for this year, which is yet to be ratified by the finance ministry.