ISLAMABAD: Questionable expenses in managing the Employees Old-age Benefit Institution (EOBI) of Pakistan are threatening its financial stability and the future of five million workers, who contribute money to its pension fund.
Insiders claimed that if corrective steps are not taken now, the institution could be facing bankruptcy by 2022. Set up by former prime minister Zulfikar Ali Bhutto in 1970s as a social security net for the private sector workers, EOBI has grown and pays Rs10bn annually to over 400,000 workers, in the form of Rs3,000 pension per month.
“Today it runs like an insurance company, with five million workers of the sector, also their employers, contributing money for old-age benefits,” an EOBI officer informed, requesting anonymity.
“By the time this huge number of premium-paying workers becomes entitled to their pensions, there would not be enough money to pay the pensions unless Employees Old-age Benefit Institution mends its ways of spending money and makes wise investments to increase its assets,” he said.
A recent example of questionable expenditures that the insiders cited was the purchase of a 4100cc Prado Jeep by the management.
Interestingly, the purchase was buried in the financial documents, relating to the multi-million fire safety and air-conditioning project, for the EOBI’s 8-storey building in Islamabad. However, it is in the use of the top management. Worse, the imposing building has been standing unoccupied for years, except for Employees Old-age Benefit Institution’s own office.
Syed Imran Ali Shah, Member Employees Old-age Benefit Institution Board, said that he had opposed the purchase because the institution’s own rules did not allow it any vehicle above 1300cc.
Internews
