by: Israr Ayoubi
Ex. PRO, EOBI
Founder Social Safety Net, Pakistan
0335-2897910
0300-3913793
Introduction of Employees’ Old-Age Benefits Institution (EOBI)
The Employees’ Old-Age Benefits Institution (EOBI) is the Social Insurance Institution of Pakistan. It operates under the control of the Ministry of Overseas Pakistanis and Human Resource Development, Government of Pakistan. It came into formation on 1st July 1976, through the passage of the Employees’ Old-Age Benefits Institution Act 1976 by the Parliament of Pakistan.
EOBI provides the following benefits to the insured person(IPs) or its survivors. An Insured Person typically becomes eligible to get Pension after reaching the age of 60 and completing 15 years of insured service with paid monthly Contribution.
EOBI Pensions
1- Old-Age Pension: This Pension is provided in an event of retirement
2- Survivors’ Pension: Survivor’s Pension is provided to the nominees of the insured person in event of death of the insured person.
3- Invalidity Pension: This Pension is provided in case of disability of the insured person
4- Old-Age Grant: Old-Age Grants are given to those who have attained the superannuation age but do not meet the minimum threshold for pension
What is Pension
Word Pension derived from the Latin word “pensio” means “payment” is a retirement fund for retired, widowed or disabled persons, regularly receives from the State or from a former Employer. Pension is also called a reward for employment.
Rights of older Persons
The rights of older persons to social security and to an adequate standard of living to support their health and well-being, including medical care and necessary social services, are laid down in the major international human rights instrument, the Universal Declaration of Human Rights(UDHR),1948, and International Covenant on Economic, Social and Cultural Rights (ICECSR),1966. The content of these rights is further specified in the normative body of standards developed by the ILO, which provide concrete guidance to countries for giving effect to the right of the older person to social security, from basic levels to full realization.
Pension Systems in the world
There are three types of pension systems in use around the world, Contributory, Non-Contributory and State Administered Pension system. Like other developed countries of the world, Pakistan has a Contributory Pension Scheme that is common for private-sector employees, workers and labours, under a Insurance system called Employees’ Old-Age Benefits Scheme. The protected employee, workers and labour under this National Pension Scheme may get their Pension benefits after their retirement and disability and in case of an Insured Person or Pensioner death, their nominated survivors may continue the Pension.
Establishment of employees Old-Age Benefits Institution (EOBI)
To achieve the objective of Article 38 (c) of the Constitution of the Islamic Republic of Pakistan, the Parliament has passed EOBI Act 1976 to provide a Compulsory Social Insurance to private-sector employees, workers and labours in the shape of Old-Age Pension, Survivor’s Pension, Invalidity Pension and Old-Age Grant.
The main purpose of the Employees’Old-Age Benefits Act 1976 is to give an additional benefit to the employees, workers and labours to protect them from the hardship of old age when they are no longer fit to work.
ADepartment named Employees’ Old-Age Benefits Institution (EOBI) under the control of the Ministry of Labour and Manpower (now the Ministry of Overseas Pakistanis & Human Resource Development, Government of Pakistan was also set up on 1st July 1976 at the federal level to implement this Pension Scheme in the whole country.
EOBI: a Trust Institution
EOBI is a statutory body and a Trust Institution and all of its employees are the trustees of the Pension Fund, that is why the Government of Pakistan has declared EOBI exempted from IncomeTax. EOBI does not receive any financial assistance from the Government for carrying out its Operations, only the monthly Contribution received from the registered Employers and Insured Persons (IPs) is the sole income of the Institution.
EOBI Functions
EOBI main functions are to Identification and Registration of Establishment, Industries and other organizations, Identification and Registration of employees, workers and labours, Collection of monthly Contributions from registered Employers and Insured Persons, and management of Employees’Old-AgeBenefits(EOB) Pension fund, investment of funds in Govt. Securities, Equity and Real Estate and provision of Benefits to its Insured Persons as per Laws.
Registration of Employers and Employees in EOBI
To achieve this goal, a law called Employees’ Old-Age Benefits Act 1976 was enforced from 1st July 1976, extended to the whole of Pakistan and is applicable to every industry, establishment or other organization where ten (10) or more persons are employed directly or indirectly by the employer or such number were so employed on any one day during the preceding twelve (12) months at the time the Act becomes into force, irrespective that the number of persons employed may reduce to less than ten (10) after the application of this Act.
EOB Scheme is a Contributory Pension Scheme and EOBAct 1976 is applicable to all categories of employees, workers and labours like permanent, temporary, daily wages, contractual, badly, seasonal and apprentices, serving in any private sector Organization or through any contractors.
EOBI monthly Contribution
A monthly Contribution equal to 6% of current Minimum Wages(Employer share is 5% and Insured Person share is 1%) has to be paid by the Employers of all the registered industrial, commercial and other organizations for their employees, workers and labours. According to EOB Act, 1976 EOBImonthly Contribution of 6% has been linked with the current Minimum Wage. The Federal Government has recently fixed a minimum Wage of Rs.25,000, by which EOBI current 6% monthly Contribution becomes the amount of Rs.1500 p.m. for each Insured Person
EOBI Board of Trustees (BoT)
In the early years, EOBI was operated under the State Life Insurance Corporation of Pakistan (SLICP) and in 1981, it was transferred to the Federal Ministry of Labour and Manpower, Government of Pakistan,(After the 18th Constitutional amendment in the Constitution in 2010 Ministry of Labour and Manpower was abolished and a new Ministry was created Ministry of Overseas Pakistanis and Human Resource Development).
EOBI’s policy-making body is a 16-member tripartite Board of Trustees(BoT).
The EOBI BoT consisted of the three officials of the Federal Government, four officials of Provincial Governments and a nominated representative of the Employers and Employees of the four Provinces. The Federal Secretary of the Ministry ofOP&HRD is also the President of the EOBI Board of Trustees. The present Board of trustees was constituted on 6 November 2013 for the term of two years, but surprisingly, despite the expiration of its two-year term, the BoT is still working.
Eligibility of EOBI Pension
Employees, workers and laboursregistered with EOBI are called Insured Person(IP).The age of eligibility for EOBI Pension is fixed at 60 years for male IPs, while in case of women and Mine workers IPs, the age limit is fixedat 55 years with a waiver of 5 years, with compulsory 15-year Insurable employment along with paid Contribution.A lump sum Old-AgeGrant is also paid to an insured person(IP)who has less than 15 years of insurable employment, but not less than two years.
EOBI has first time started the disbursement of Pension toits IPs in 1983 with the amount of Rs.75 p.m, at present, EOBI is paying a minimum monthly Pension of Rs.8,500 p.m. and the maximum pension is calculated as per the following EOBI Pension formula.
(Average Minimum Monthly Wagesx No. of years of Insurable Employment)
50
However, it is certainly commendable that EOBI is a pioneer Institution in the country, whose Pensioners are very easily getting their regular monthly Pension through ATM cards, without any inconvenience of waiting and long queues.
EOBI Banking Services
The EOBI has initially assigned responsibilities of collection of Contributions from its registered Employers and disbursement of Pension among Pensioners to Habib Bank Ltd., the country’s largest bank. later, the United Bank Ltd., Tameer Micro Finance Bank, and National Bank of Pakistan was also assigned these responsibilities by open bidding.
Presently Bank Al-Falah Ltd. (BAFL)is an authorized bank of EOBI and charges Rs. 26 per transaction by providing services of an online collection of Contributions from registered Employers and disbursement of monthly Pension through ATM Card since 2016 throughout Pakistan. Bank Alfalah’s 4-year contract has been expired in 2020, but due to lack of interest and negligence in the Management of EOBI, the term of BAFLwas extended twice and the selection of a new bank as per the procedure has not taken place yet. It is a matter of great concern that due to the Non-reconciliation process and lack of interest and great negligence of EOBI Management that after a long time a huge amount of EOBI Pension fund is still stuck in all the above-mentioned banks.
Federal Government ignorance
Looking at the current miserable situation of EOBI, with the passage of time Federal Government has forgotten its Constitutional obligations made under Article 38 (c) of the Constitution of the Islamic Republic of Pakistan that The Stateshallprovide for all persons employed in the service of Pakistan or otherwise, social security by compulsory social insurance or other means.
Similarly, the Employers community as a major stakeholder and main financial sponsor of the EOBPension Scheme is also evading their legal and moral obligations towards the social protection and well-being of their employees, workers and labours.
Therefore,EOBI Pension Scheme’s two main stakeholders Federal Government and the Employers community are showing gross irresponsibility and negligence towards their legal and moral obligations to the millions of employees, workers and labour for theirPension rights. Both main stakeholders are not paying their share and actual contribution to the EOBI pension fund. The vast majority of Employers and Establishmentsare openly violating Sec.37 of EOBI Act 1976 and under the guise of the 18thConstitutional Amendment.
Due to the lack of interest and incompetency of the federal government and EOBI Management, most Employers and organizations have registered in small numbers instead of an actual number of their employees, workers and labours only as a show-off and they are also not paying their actual contributions. Employers Federations, Trade and Industries Associations and other Employers bodies of the country are also playing an active negative role in depriving their employees, workers and labours and also the survivors of their future pension rights which caused denying of fundamental rights of millions of employees, workers and labour of the country, those have shed their blood and sweat for the industrial production, development and prosperity of the country.
The 18thAmendment Adverse effects on EOBI
The 18thAmendment of the Constitution of Pakisan was passed by the National Assembly of Pakistan on April 8, 2010, as a result, 15 Ministries including EOBIs’ Ministry of Labour and Manpower were devolved at the Federal level and were given to the provinces.Due to devolution under the 18th Amendment,EOBI Act.1976 has become frozen and now it is only valid for federal territory Islamabad and Gilgit Baltistan. Which created a severe constitutional, administrative and financial crisis for the survival of the EOBI Pension Scheme.
Therefore, the Government of Sindh under the guise of the 18thAmendment has established its own Sindh Employees’ Old-Age Benefits Institution (EOBI) in 2014. However, the KPK and Balochistan Assembly have already passed Resolutions to retain EOBI in Federal Government. In view of this complex situation the Council of Common Interest (CCI),which resolves disputes over the placement of Departments under the Federation or Provinces under the 18th Amendment has decided in its 41st meeting held on 6th August 2020 at Islamabad that:EOBI shall remain with Federal Government till such time a mutually agreed mechanism developed.
The devolution issue of EOBI is also under sub judice before the Supreme Court of Pakistan under case No.39/2012.But all of this has had a devastating effect on Employers’ monthly Contributions to EOBI.The majority of registered Employers, especially in Punjab province, they are paying a 6% monthly Contribution of EOBI a meagre amount of Rs.170 p.mper Insured person as per the Rs.3,000Minimum Wageof year 2005, instead of the current Minimum Wage of Rs. 25,000 per month, by which the EOBI contribution becomes Rs.1500 p. m per Insured Person.As a result of the 18th Amendment, EOBI Pension Scheme has suffered irreparable damage.
Pakistan Labour force and EOBI coverage
According to the Federal Bureau of Statistics Pakistan that the total current labour force of Pakistan is about 750 million. It is very unfortunate that even after the passing of 46 years of establishment of EOBI, it has so far registered about 9.7 million employees, workers and labours in the EOBI Pension Scheme anda large number of employees and workersand labour of the total workforce of the country are still unregistered and are deprived of their Pension rights underthe EOBIPensionScheme.
EOBI Performance at a glance
up to 30th April 2022
Total No. of Registered Employers: 139,608
Total No. of Insured Persons: 9,797,758
Total No. of Pensioners: 768,146
Contribution collected: Rs. 24,186,697,286 (July 2021 to April 2022)
Pension Disbursed: Rs. 37,694,328,968 (July 2021 to April 2022)
Despite the passage of so long time due to the ignorance and negligence of the FederalGovernmentno any amendments, reforms, and legislation have been made in EOB Act 1976 to include the large segment of Informal sector employees,workers and laboursbelongs to agriculture,fishing,public and goods transport,smalland medium enterprises,religiouseducationalinstitutions,healthcareandcharity organizations, domesticservants,home based workers and Self-employedin the National Pension Scheme,which is a question mark on the Federal Government claim of the welfare of working class of the country.
EOBI anonymousبے نامی)(Contribution
Here is another important point to note, it has long been a wrong practice remains by EOBI Management that when they set up the annual target of EOBI for the financial year, instead of emphasis on at the maximum number of registration of employees, workers and labours in EOBPension Scheme,the Management analogically fixed the target for maximum collection of contribution from registered and new employers. Therefore, EOBI Field OperationsStaff has been engaged by receiving anonymous (بے نامی)contributionfrom the registered and new employers. This wrong practice continues for a long time.
Collection of contributions from employers without the name, father name and CNIC No., residential address and Cell No. of the concerned employee, workers and labours,caused EOBI does not have required data of most of its registered employees,workers and labours (IPs).Due to payment of Contribution in anonymous (بے نامی) accounts, by the registered and new employers, millions of deserving employees,workers and labour are not only deprived of the legal right of registration in EOBI, getting EOBI Registration cardPI-03 and they and their survivors may also lose their future pension benefits,forever.
The demand of Increase in EOBI Pension and Actuarial valuation
Due to quickrising of inflation and depreciation of the rupee in the country has made it difficult for pensioners to survive on a meagerEOBI Pension of Rs 8,500 p.m.Therefore, EOBI Pensioners often demand an increase in Pension,their demand is certainly justified.they are informed that a prescribed procedure has been laid down under the EOBI Act 1976 for increase in pension.
According to section 21 of EOB Act 1976:The Institution shall at intervals of not more than three years, have an actuarial valuation made in the prescribed manner of the assets and liabilities and no change in rate of contribution or benefits under the Act shall be made without proper actuarial valuation.
Therefore, it is clear that the FederalGovernment, the Prime Minister or the Federal Minister OP&HRD and Finance Minister,do not authorized to any increase of EOBI pension, like other government employees(Civil Servants and Armed Forces) pensions in the annual budget.
In the past, some governments had illegally increased EOBI pensions even though the fund does not have the required capacityon the basis of gaining political sympathy of the pensioners, as a result, the EOBI Pension fund has been severely affected.
However, It is fact that,presently the EOBI Pensioners are also facing high inflation and the worst price hike of daily food items, medicines and health care.It has become very difficult for elderly and sick couple for living whole month with a meagre amount of Rs. 8,500 p.mEOBI pension,so there is an urgent need for a reasonable increase in pension to provide relief them.
In view of the plight of the EOBI Pensioners,if the Federal Government immediately restore its Matching Grant to EOBI and the registered employers and Establishment mustpay regular due monthly contribution of Rs.1500 p.mto EOBI, according to the existing Minimum Wageof Rs.25,000 p.m, it ishoped that the EOBI Pension can be increased up-to Rs.25,000 per month.
Provision of healthcare facility to EOBI Pensioners
Similarly, pensioners often suffer from various ailments in old age and are in dire need of medicine and proper health care. In view of this purposeapastManagement of EOBI had set up a Non-life Insurance CompanySahara Insurance CompanyLtd.(SICL) in 2013,with a paid-up capital of Rs. 500 million and Security Exchange Commission of Pakistan (SECP) has issued a licenceto SICL to give cover health care facilities toEOBI pensioners. Under the plan, the EOBI was intended to provide health coverage to its pensioners for five major diseases including heart, liver and kidney ailments. The premium of the insurance cover will be paid by the Workers Welfare Fund (WWF).SICL has been inactive for a long time,the reason unknown. TheSahara Insurance Company needs to be activated immediately.
EOBI a lawless Institution and stronghold of corrupt Mafia
Unfortunately,due to the complete negligence and Non-accountabilityby the Federal Government,EOBI BoT and EOBI Management, the national welfare Institution EOBI has become a model of complete lawlessness and a stronghold of strong corrupt Mafia. Where illegal Deputationist, illegal appointments by violating federal quota,fake andirrelevant degreesand fake domicile holders’influential officers are holding key positions and powers.Despite being the Trustees of EOBI Pension fund, these influential officers are committing grave treachery in the Trust Pension fund. Most of the EOBI officers are divided into groups for their personal interests and have filed lawsuits and appeals against each other in the courts for their seniority and promotions.On which EOBI’s precious time, resources and Trust money are being wasted.
As a result,EOBI is facing severe mismanagement,irregularities and the whole Institution is being run on Ad-hocism and like dislike policyprevailsinstead of a merit base and right man right job policy,by neglecting qualified, senior,experienced and honest officersthe entire EOBI is ruled by illegal and power full Deputationist and most junior and OPS officersmajority belongs to 2007 and 2014 batch.
Some of the influential officers of Institution are involved in abuse of power, fraud,bribery, extortion and embezzlement in EOBI Pension fundTrust of the poor workers of the country.But no action was taken against them despite solid documentary evidences.
Despite several Scams, Mega corruption and fraudsof million and billions of rupees in EOBI Pension fundTrust, what a pity that no one dishonest and corrupt officer has been punished till date.
An eye-openingstory of massive Scams in EOBI Pension fundTrust
In the past, the EOBIPension fund Trust has faced many massive Scandal, scams and frauds by dishonesttop Management,corrupt officials of EOBI and others even by some members of Board of Trustees (BoT).
1st Scam ofRs.1.040 billionof FIBsRepo deal during 2002
The first scam of Rs.1.040 billionin EOBI was came to light in 2002by illegally selling of Federal Investment Bonds (FIBs) Repo dealScandalin 2002.During the investigation by NAB,Shaikh Barkatullah then Chairman EOBI, Tahir Mahmood, then Director Investment EOBI (on Deputation) and after Acting Chairman of SECP, Muammad Tahir Siddiqui,Rehamatullah Yaqoob, The Prudential Commercial Bank,Karachi, Ahmed Waheed, Bank of Ceylon,Karachi Muhammed Zafar Iqbal, Syed Samir Rauf, Muhammed Tariq Siddiqui,Muhammed Siddiq Shaikh, Muhammed Salim Patni, Syed Fahim Wasti, Muhammed Asif Dar and Syed Haider Javed Rizvi were found involved in the FIBs Repo Deal Scam.
Meanwhile,the then Minister for Labour and Manpower Mr.Umar Asghar Khan and then Financial Advisor of EOBI Mr. Haroon Siddiq had mysteriously committed suicide in 2002,while the then Chairman EOBI Shaikh Barkatullah had fled the country to save his life, some of the accused had to go to jail and were ultimatelyreleased by plea bargain with NAB.But a huge sum of money sunk by the country’s poor employees and workers Pension fund trust have yet to be fully recovered.
While a well qualified, honest and innocent EOBI senior officer Mohammed Salim,then DeputyDirectorGeneralInvestment, by making him a scapegoat was sentenced to18 months in prison and he also lost his job. Hehave been treated unfairly in this Scam, after his illegal dismissal from EOBI, Muhammad Saleem wasattached to the teaching field and he has
joined Muhammad Ali Jinnah University, Karachi as a visiting lecturer in Finance Department.
72 years, Muhammad Saleem, MBA (IBA), FCMA having a brilliant academic career in Finance and Business education, he is a regular contributor of different newspapers and magazines on Finance subject. Despite the deprivation of his pensionary benefits,limited resourcesand discouragingcircumstances, he is doing Ph.D in Finance.
2ndScam Rs. 35 billion Mega land Scandalduring 2010-13
While another massive scandal of Rs. 35 billion Mega Land scandal was unearthed during 2010-2013,some of 42 powerfull,influentialand corrupt high officialsof EOBI and even some members of EOBI BoT were found involved in the 35 billion Mega land scandal.Then Chairman EOBI Zafar Iqbal Gondal with the full blessing of his powerful patrons and connivance of his illegal Deputationistcolleagues,Wahid Khursheed Kunwar, then DG, Investment, Najam-ul-Saqib Siddiqui thenDG, Finance& Accounts/Financial Advisorand Muhammad Ayub Khan, then Director Finance & Accounts and Asif Azad, then Director Finance &Accounts EOBI and some members of Board of Trustees has illegally purchased 18 lands/properties of low price on exorbitant rates in the lure of heavy commissionsin Karachi,Sukkur, Lahore, Islamabad and Chakwal,by claiming a profitable investment from the EOB Pension fund Trust. After the Scandal came to the light the Supreme Court of Pakistan has taken a sue moto notice under case No.35/2013 in June 2013 of EOBI Rs.35 billion Mega Land Scandal.
During the early hearing,the Supreme Court of Pakistan had ordered the FIA to investigateagainst all these corrupt officers of EOBI and others,after the investigation of FIA all allegations were proved against all accused. The Director General FIA has submitted a detail investigation report in the Supreme Court of Pakistan on25 January 2014. According to FIA report,FIA Karachi, Lahore and Islamabad has registered following FIRsagainst all accused.
1- FIR No.11/2013 on the basis of Enquiry No.30/2013 of FIA, Crime Banking Circle, Karachi
For illegally purchasing of land bearing Naclas153, Survey No. 536 & 537 ofDeh.Mehran,Tapo Malir near Karachi Airport, Karachi
……………………………………………………………………………………….
against
1- Zafar Iqbal GondalS/o Sher Muhammad Ex. Chairman EOBI
2- Wahid Khursheed Kunwar S/o Kunwar Khursheed Muhammad Khan DG/Investment AdvisorEOBI
3- Mst.Nighat Mirzaw/o Col. Ali Asad Mirza,Seller
4- Mst. Maham Najeeb d/o Col. Ali Asad Mirza,Seller
5- Col (R) Ali Asad Mirza, Seller
6- Muhammad Qasim Parvez,front man of sellers
7- Muhammad Iqbal Dawood Pakwala,Convenor, EOBI Investment Committee (On post arrest bail)
8- Malik Imtiaz Mehfooz, Member BoT from Balochistan/Investment Committee (Absconder)
9- HuzoorBux Naeem, Senior Manager/Valuator
10-Masood Ahmed Ch. front man of Ch.Wajahat Hussain, then Federal Minster, who obtained kick backs.
FIRs registered under FIA Punjab,Lahore
1- FIR No.51/2013 dated 13 August 2013
For illegally Purchasing of 3 Kanal and 16 Marla of landFaqir Plaza at 6 ChattarJee Road Lahore (Hotel One), amounting to Rs. 250 millionAgainst
……………………………………………………………………………………….
against
1- Zafar Iqbal Gondal Ex. Chairman EOBI
2- Wahid Khursheed Kunwar DG/Investment Advisor
3- Muhammad Iqbal Dawood Pakwala,Convenor EOBI Investment
4- Malik Imtiaz Mehfooz, Member BoT from Balochistan/Investment Committee
5- Major (R) Nawaz Ahmed Minhas, Owner/Seller Faqir Plaza Lahore
6- Farhan Bukhari Owner/Seller Faqir Plaza,Lahore
7- Mian Wamiq Anwar, evaluator
2- FIR No. 52/2013 dated 13 August 2013
For purchasing of 2500 shares of Faqir Plaza along with 7 shops, Basement I and II and remaining area of 10 Marla amounting to Rs. 36 Million
………………………………………………………………………………………
against
1- Zafar Iqbal Gondal Ex. Chairman EOBI
2- Wahid Khursheed Kunwar DG/Investment Advisor
3- Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4- Malik Imtiaz Mehfooz, Member BoT from Balochistan/Investment Committee
5- Major (R) Nawaz Ahmed Minhas, Owner/Seller Faqir Plaza Lahore
6- Farhan Bukhari Owner/Seller Faqir Plaza,Lahore
3- FIR No. 53/2013dated 13 August 2013
For purchasing of 742 residential and commercial plots at River Edge Housing Scheme Multan Road, Lahore
……………………………………………………………………………………….
against
1. Zafar Iqbal Gondal Ex. Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4. Malik Imtiaz Mehfooz, Member BoT, from Balochistan/InvestmentCommittee
5. Najam-ul-Saqib Siddiqui S/o Sahibzada Latif-ur-Rehman
6. DG/Financial Advisor EOBI/MemberInvestment Committee
7. Asif Azad,Director Investment EOBI
8. Mian Wamiq Anwar, Evaluator
9. Abdul Aleem Khan,Proprietor M/s Vision Developers
10. Mst.Naseem Khan. Director M/s Vision Developers(Deceased on 19 November 2013)
11. Imran Anwar CFO M/s Vision Developers
4- FIR No. 54/2013 Dated 13 August 2013
For illegally purchasing of 226 commercial plotsat River Edge Housing Scheme Multan Road, Lahore
……………………………………………………………………………………….
against
1. Zafar Iqbal Gondal Ex. Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4. Malik Imtiaz Mehfooz, Member BoT from Balochistan/InvestmentCommitteeNajam-ul-Saqib Siddiqui DG/Financial Advisor EOBI/Member Investment Committee
5. Asif Azad, Director of Investment, EOBI
6. Ishaq Khusro, Financial Advisor/DG EOBI/Member Investment Committee EOBI
7. Imran Anwar CFO M/s Vision Developers
8. Abdul Aleem Khan, Proprietor M/s Vision Developers
9. Mst. Naseem Khan. Director M/s Vision Developers (Deceased on 19 November 2013)
5- FIR No. 55/2013 Dated 13 August 2013
For illegally purchasing commercial plots measuring 40 Kaneland 14 Marla and 113 sq. ft at Mauza Sehajpaal near DHA Phase VIII, Ring Road, Lahore
……………………………………………………………………………………….
against
1. Zafar Iqbal Gondal Ex. Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4. Malik Imtiaz Mehfooz, Member BoT from Balochistan/Investment Committee
5. Mian Wamiq Anwar, evaluator
6. Amir Shafi Akram, Proprietor, Asset Management Co. (Pvt) Ltd.
7. Shakil Ahmed Partner, Asset Management Co. (Pv.) Ltd.
8. Habil Ahmed Partner, Asset Management Co. (Pvt) Ltd.
6- FIR No.56/2013 dated 13 August 2013
For illegally purchasing PlotNo.101 measuring 9.02 Kanal worth Rs.790 Million at Upper Mall Road, Lahore
……………………………………………………………………………………….
against
1. Zafar Iqbal Gondal Ex. Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4. Malik Imtiaz Mehfooz, Member BoT from Balochistan/Investment Committee
5. Mian Wamiq Anwar, evaluator
6. Amir Shafi Akram, Proprietor, Asset Management Co.(Pvt.) Ltd.
7. Najam-ul-Saqib Siddiqui DG/Financial Advisor EOBI/Member Investment Committee
8. Ishaq Khusro, Financial Advisor/DG EOBI/Member Investment Committee EOBI
9. Asif Azad, Director of Investment EOBI
7- FIR No.57/2013 dated 13 August 2013
For illegally purchasing of 1505 plots measuring 5 Marla, 64 plots of 10 Marla and 75 commercial plots of 2.5 to 5 Marla worth Rs. 1150 Million at Pak ArabHousing Scheme, Firozpur Road, Lahore
……………………………………………………………………………………….
agents
1. Zafar Iqbal Gondal Ex. Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4. Malik Imtiaz Mehfooz, Member BoT from Balochistan/Investment Committee
5. Najam-ul-Saqib Siddiqui DG/Financial Advisor EOBI/Member Investment Committee
6. Ishaq Khusro, DG/Financial Advisor EOBI/Member Investment Committee EOBI
7. Asif Azad, Director of Investment, EOBI
8. Mian Wamiq Anwar, Evaluator
9. Ammar Ahmed Khan
10. Mst. Shazia Ammar
11. Mst. Suriya Yasmin
FIRsregistered under FIA Islamabad
8- FIR No.25/2013 dated 16 July 2013under FIA Police Station/SIU Islamabad
For illegally purchasing of vehicle, Toyota Land Cruiser Prado,4100cc Reg. No.BF-1021 amounting to Rs.19.38 million for Zafar Iqbal Gondal then Chairman
EOBI and grab of contract HAVC (Heating Ventilation and Air Conditioning) and Sprinkler System at EOBI House Islamabad.
……………………………………………………………………………………….
against
1. Zafar Iqbal Gondal Ex. Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4. Habib-ud-Din Junaidi, Member EOBI Board of Trustees Sindh/Director PRIMACO
5. Muhammad Hanif Baloch DG Operations EOBI/Director PRIMACO
6. Neezar Ali Khawaja, CEO PRIMACO
7. Maj.(R)Sahibzada Noor-ul-Amin,(Contractor for supply and installation of HAVC)
8. Salahuddin Shaikh Assistant Audit PRIMACO
9. Mst.Mumtaz Jilani Project Manager NESPAK, Karachi
10. Zahid Rasheed General Manager, NESPAK, Karachi
11. Muhammad ArifChangezi Chief Architect, NESPAK, Karachi
9- FIR No.26/2013 dated 16 July 2013 under FIA Police Station/SIU Islamabad
For illegally purchasing 39 Marla of land at Mauza Odherwal Talagang Chakwal
……………………………………………………………………………………….
against
1. Zafar Iqbal Gondal Ex. Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4. Malik Imtiaz Mehfooz, Member BoT from Balochistan/Investment Committee
5. Najam-ul-Saqib Siddiqui DG/Financial Advisor EOBI/Member Investment Committee
6. Asif Azad, Director Investment, EOBI
7. Mian Wamiq Anwar, evaluator
8. HuzoorBux Naeem, Senior Manager/Valuator
9. Muhammad Sana-ul-Haq, Seller of property
10. Raja M Azhar Hussain Seller’s Attorney
10- FIR No.27/2013 dated 16 July 2013 under FIA Police Station/SIU Islamabad
For illegally purchasing of 8 Kanals (160 Marla) plots at Lake view Road KalarKahar, Chakwal. Total loss of Rs.18,666,720.to EOBI Pension fund Trust.
………………………………………………………………………………………
against
1. Zafar Iqbal Gondal Ex. Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4. Malik Imtiaz Mehfooz, Member BoT from Balochistan/Investment Committee
5. Najam-ul-Saqib Siddiqui DG/Financial Advisor EOBI/Member Investment Committee EOBI
6. Asif Azad, Director of Investment, EOBI
7. Mian Wamiq Anwar, Evaluator
8. HuzoorBux Naeem, Senior Manager/Valuator
9. Muhammad Maqsood-ul-Haq, Seller
10. Raja M Azhar Hussain Seller’s Attorney
11- FIR No.28/2013 dated 24 July 2013under FIA Police Station/SIU Islamabad
For illegally purchasing Commercial property at Crown Plaza, Plot No. 5-A Sector F-7 Markaz, Islamabad
……………………………………………………………………………………….
against
1. Zafar Iqbal Gondal Ex.Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor, EOBI Investment
4. Najam-ul-Saqib Siddiqui DG/Financial Advisor EOBI/Member Investment Committee
5. Asif Azad, Director of Investment EOBI
6. Mian Wamiq Anwar, evaluator
7. Abid Mehmood, Deputy Secretary M/o Human Resource Development, Government of Pakistan
8. Malik Imtiaz Mehfooz, Member BoT from Balochistan/Investment Committee
9. Masood Ahmed Ch., frontman of Federal Minister Ch.Wajahat Hussain
10. Abdul Qayyum, Owner of Crown Plaza Islamabad
11. Ajmal Khan, Director Investment EOBI (Present Dy. Director General Finance & Accounts EOBI)
12- FIR No. 2/2014 dated 3 February 2014 under FIA Police Station/SIU Islamabad
For illegally purchasing 321 Kanalsof land at DHA Commercial Expressway, Islamabad. an exorbitant rate of Rs.1.74 Billion
……………………………………………………………………………………….
against
1. Zafar Iqbal Gondal Ex. Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4. Najam-ul-Saqib Siddiqui DG/Financial Advisor EOBI/Member Investment Committee
5. Malik Imtiaz Mehfooz, Member BoT from Balochistan/Investment Committee
13- FIR No. 3/2014 dated 3 February 2014 under FIA Police Station/SIU Islamabad
For illegally purchasing plots/villas at Mauza Rakh Takht Pari, Rawalpindi, an exorbitant rate of Rs.6.82 Billion ……………………………………………………………………………………….
against
1. Zafar Iqbal Gondal Ex. Chairman EOBI
2. Wahid Khursheed Kunwar DG/Investment Advisor
3. Muhammad Iqbal Dawood Pakwala, Convenor EOBI Investment
4. Najam-ul-Saqib Siddiqui DG/Financial Advisor EOBI/Member Investment Committee
5. Mian Wamiq Anwar, Evaluatorand Others
14- FIR No.65/2021 dated 12 November 2021 FIA Anti-Corruption Circle, Islamabad, under Suo Motu SCP and upon Enquiry No.115/2013
For abuse of Authority, violation of Govt. rules and loss of 3773.67 million of EOBI Pension funded“Cineplex & Commercial Complex, Sector I-8 Islamabad” Project.
……………………………………………………………………………………….
against
1. Zafar Iqbal Gondal S/o Sher Muhammad Ex. Chairman EOBI
2. Abdur Rauf Chaudary, the then CEO of PRIMACO
3. Chaudary Tahir Hussain, CEO of M/s Skyways constructions
4. Karamat Ullah Chaudary, Member BoDof PRIMACO
5. Inam-ur-Rab Minhas, Incharge M/s Zeeruk International
6. Muhammad Ayub Khan, Director Investment EOBI
7. Syed Iqbal Shah, Member BoT EOBI/ Bod PRIMACO
8. Kazi Iftikhar Ahmed, Director/ Member BoD PRIMACO
9. Najam-ul-Saqib Siddiqui, Director/ Member BoD PRIMACO
10. Farooq Ahmed, Director/ Member BoD PRIMACO
11. Wahid Khursheed Kunwar DG/Investment Advisor EOBI
12. Brig. (R) Shadab Ali, M/s The Engineer
13. Ayesha Noor Awan, G/M Finance and Accounts PRIMACO
14. Muhammad Jamil, Director Chairman Secretariat, EOBI, Karachi
15. Asif Azad, Director of Investment, EOBI
16. Aftab Nagori, Assistant Director GAD, EOBI
17. Asad Ullah Bhonr, Assistant Director Investment، EOBI
18. Muhammad Afzal, Assistant Manager (R.E.), PRIMACO
Despite Supreme Court of Pakistan Suo Motu Notice No.35/2013, FIA investigations and numerous of FIRsunder FIA Karachi, Lahore and Islamabad against these dishonest and corrupt EOBI officials and other accused, due to the lack of interest in this important issue and incompetency of the Federal Government, the Board of Trustees of EOBI and the Management of EOBIdespite the passage of 9years long time this Mega land Scandal is still pending before the Hon’ble SCP. As a result, all the 42 dishonest and corrupt officers and others, committed serious treachery in the EOBI poor workers pension fund and caused irreparable loss of billions of rupees including Ex. Chairman EOBI Zafar Iqbal Gondaland other accused have clearly escaped strict punishment and are enjoying on the court bails.This massive Scam has caused irreparable loss to EOBI Pension fund Trust.
However, EOBI some dishonest and corrupt officials involved in these massive fraud cases have not been severely punished, therefore time to time abuse of power, fraud and embezzlement cases in the EOBI Pension fund is still continue as usual without any fear and accountability by some dishonest and corrupt officials of EOBI.
3rd Scam of shares purchasing of Rs. 290 million during 2010-12
A fraud also came to light in 2014 when some dishonest and corrupt high officials of EOBI with the connivance of a well-known brokerage house and trading company shares of extremely low value were bought at the highest prices illegally purchased in the lure of heavy commissions
According to an FIA investigation report, some EOBI corrupt officials have illegally purchased extremely low-valued 17,350,000 shares at the highest prices in the name of Pension fund investments and in order to get their huge commissions with the connivance of a renowned brokerage house od Karachi and M/s Amtex (Pvt.) Ltd. Karachi during 2010-2012.
The FIA enquiry report established that the accused persons were:
15- FIR No. 27/2015 on31December 2015 FIA Corporate Crime Circle, Karachi has registered against the above 22 accused.
1-Zafar Iqbal Gondal, the then Chairman EOBI, 2- Wahid Khursheed Kunwar, the then DGInvestment EOBI,3-Muhammad Iqbal DawoodPakwala, then Convenor of the EOBI Investment Committee,4- Mirza Imtiaz Ahmed then DG, Finance&Accounts EOBI, 5- Muhammad Ayub Khan then Director Finance& Accounts EOBI, (An Ex. employee of State Life Insurance Corporation), CEO/Directors of M/s Amtex Ltd. namely 6- Khurram Iftikhar CEO, 7-Shahzad Iftikhar, Director,8-Nadeem Iftikhar,Director 9- Zafar Saleem Director, 10- Faiza Khurram,Director,11- Sajida Shahzad,Director, 12- Nusrat Parveen,Director, CEO/Directors of M/sAmcap Securities namely 13- Abdul Rauf Ghani s/o Abdul Karim,Chief Executive, 14-Haji Iftikhar-ud-Din s/o Alla-ud-Din Director, 15- Sonia Nadeem w/o Nadeem Iftikhar,Director, CEO/Director of AKD Securities Limited namely 16- Muhammad Farid Alam ,CEO, 17-Hina Junaid Balgaamwala, Director, 18- Tariq Adam Ghumra,Director, 19-Muhammad Iqbal Director, 20- Khurram Shahzad, 21-Marium Shahzad and 22- Naveed Shahzadand others committed offence under section 409/109/34 PPC r/w 5(2) Prevention of Corruption Act 1947.
The above shares were purchased on the recommendation and approval of the EOBI Investment Committee, comprising Zafar Iqbal Gondal the then Chairman of EOBI, Muhammad Iqbal Dawood Pakwala, then Convenor of the EOBI Investment Committee, Wahid Khursheed Kunwar, the then DG/ InvestmentAdvisor EOBI which caused a loss of Rs.290 million to EOBI Pension fund.FIA Corporate Crime Circle, Karachi has registered FIR No. 27/2015 on31December 2015against the above 22 accused.
But due to a lack of interest and ignorance of EOBI Management all the powerful and influential accused are enjoying bail. Meanwhile, despite these serious allegations of massive corruption and embezzlement the EOBI Management has surprisingly reinstated the corrupt officer Muhammad Ayub Khan, DDG Finance and Accounts, who was on bail and suspended since 2016. Muhammad Ayub Khan DDG Finance and Accounts has posted vide Notification No.148/2022 on 14 April 2022 as Deputy Director-General, Adjudicating Authority Sindh and Balochistan, which is a very lucrative post.
Mr Shakil Ahmed Mangnejo, Ex. Chairman EOBI, a man of principal and the honest officer has issued a Charge Sheet and Statement of Allegation against Muhammad Ayub Khan before his recent transfer on 11 May 2022 despite strong political and other pressuresfor the most corrupt officer of EOBI Muhammad Ayub Khan. But despite all these, notorious Muhammad Ayub Khan has devised a plan to save himself from strict punishment.
Allegedly under the auspices of a Federal Minister, Muhammad Ayub Khan has very cleverly arranged to conduct his Enquiry by his favourite officer Mr.Ahmed Hanif Orakzai Member, Federal Land Commission, Islamabad as Enquiry officer in his massive corruption case and his fast friend Muhammad Ajmal Khan(Deputy Director General Finance and Accounts EOBI, who is also nominated in a FIR No.28/2013 dated 24 July 2013 under FIA Crime Circle /SIU Islamabadfor illegally purchasing ofFor illegally purchasing of Commercial property at Crown Plaza, Plot No. 5-A Sector F-7 Markaz, Islamabad,which caused loss of Rs. 1050 million to EOBI Pension fund) is appointed as EOBI Representativefor conducting his Enquiry. Interestingly, accused officer Muhammad Ayub Khan, Federal Minster, Enquiry officer and EOBI Representative are belongs to KPK and same ethnic group.
It is pertinent to mention here that Muhammad Ayub Khan,DDG Finance & Accounts EOBI is also nominated in another FIR,registered by FIA Anti-Corruption Circle, Islamabad,the FIR No.65/2021dated 12 November 2021 in “Cineplex& Commercial Complex Sector I-8 Islamabad” case, along withEx. Chairman EOBI Zafar Iqbal Gondal andAbdul Rauf Chaudry then CEO of PRIMACO and 19other officials of EOBI and aEOBI subsidiary PRIMACO,which caused Rs.3773.67 million loss to EOBI Pension fund.
4th Scam of Shares purchasing of Bank of Punjab
Anotherscam in EOBI Pension Fund came to light in 2008-9 by illegally purchasing of shares of Rs.3.8 billion Bank of Punjab (BoP),by violating EOBI Investment rules. The EOBI also deposited Rs1.3 billion in the BoP,taking its total investment to Rs5.6 billion which was more than the bank’s total paid-up capital. These fraudshavecaused a huge loss to the institution. The Supreme Court is hearing a case of the Rs9 billion in BoP loan scam. This caused a huge loss to EOBI Pension fund.But as usual due to lack of interest and ignorance of EOBI Management all the influential accused are enjoying.
Pakistan Real Estate Investment and Management Company (PRIMACO)
White elephant of EOBI
According to the EOB Act 1976, Employees’ Old-Age Benefits Institution, is not a business, trade or manufacturer but a service as it to provides InsuredPerson in the shape of Old-Age allowance and/or InvalidityAllowance.
Contrary to this clear law, a past Management of EOBI headed by then Chairman Brig. (R) Akhtar Zaminhad set up Pakistan Real Estate Investment and Management Company (PRIMACO), it was registered with Security Exchange Commission of Pakistan on 22 March 2006 with a paid-up capital of Rs.100 million.Earlier, a RealEstate department was set up headed by Mr. N.H Sabzwari,aforeign qualified, honest and well experiencedcivil engineer for this purpose.Nevertheless,the then Chairman EOBI, an influential Brigadier (R)Akhtar Zaminhas decided to set up PRIMACO.
But despite the spending ofmillion and billions of rupees from EOBI Pension fund on various Mega business construction projects, the PRIMACO has totally failed, due to large scale mismanagement, irregularities and massive corruption in these Projects.It should also be noted that several CEOs of PRIMACO have been removed on serious charges of incompetence and corruption. Now the PRIMACO has become a heavy burden on EOBI and it is also called the “white elephant of EOBI”.
Case of 400 illegal appointments in EOBI
During he PPP Government in 2010-13, then Chairman EOBI Zafar Iqbal Gondal with the full patronage of the Federal Minister for Labour and Manpower, Syed Khursheed Ahmad Shah and other high officials and some members of Board of Trustees has illegally appointed 400 beloved and influential persons belongs nepotismto top political and elite familiesby violating of all Rules and Regulations of EOBI, without any vacancy advertisement, required qualification, age, experience,Domicile and prescribed federal quota on key posts.
EOBI Employees Federation of Pakistan (CBA)has strongly protested against the large-scaleillegal appointments and irregularitiesin EOBI. In first stepEOBI CBA has arranged a peaceful protest and then a Pen drop strike in EOBI Head office Karachi andother EOBI offices across the country. But when, despite the peaceful protests and pen drop strike no one action came from the then EOBI Management, then CBA has finally turned to the Supreme Court of Pakistan for justice.
Mian TajammalHussian (Faisalabad) President of EOBI CBAhas filed a complaint against massive illegal recruitments in EOBI vide CMA No. 5215 and HRC No. 49012-Pto the Supreme Court of Pakistan and Syed Mubashir RaziJaffery, Secretary Generalof EOBI CBAhasalso filed a CP. No. 06/2011 in the Supreme Court of Pakistan.During this long legal struggle, Syed Mubashir Razihas faced numerous hardships, including serious threats, retaliation and dismissal from his service by the powerful EOBI Management.But despite all these problems and difficulties, he and his comrades remained steadfast in achieving their goals.
Syed Mubashir Razi being a law graduate and having strong command on law,Rules and Regulations has personally pleaded his case with confidence and boldness before the Hon’ble Judges of Supreme Court of Pakistan.While in front of him were EOBI Management hired great and eminent lawyers of the countryon exorbitant fees. But with his effective legal arguments, record and documents, Syed Mubashir RaziJafferyhas succeeded in persuading the judges of the Hon’ble Supreme Court of Pakistan.
After several hearings theHon’ble Supreme Court of Pakistan has announced its historical decision on 17thMarch 2014 in which the SCP has declared 358illegal appointmentsin EOBI,on which the EOBI Management has immediately dismissed order of 358 officers and employees vide Office Order No. 77/2014 dated 17thMarch 2014.It is pertinent to mention here that during the court proceedings some senior officers of EOBI HR Department has maliciously manipulated in the list of illegally appointees and has saved 42 illegal appointees by PPP Government,who are still working in EOBI.
Syed Mubashir Razi Jafari and a few of his loyal comrades because of their hard work day and night and true passion has managed to save the EOBI from this powerful and corrupt Mafia through their legal struggle in spite of very unfavourablesituation and limited resources.
Syed Mubashir RaziJaffery: a jewel of EOBI
Asenior and honestemployee of EOBI,Syed Mubashir RaziJaffery, who isalso General Secretary of EOBI Employees Federation of Pakistan (CBA) is a great human being of extraordinary qualities and God gifted abilities. His main objective
of life is the supremacy of principle and true justice in the societyincluding EOBI.
Syed Mubashir Razi has rendered valuable services in protecting and safeguarding EOBI from the most corrupt and dishonest elements and for which he has deserves tremendous tribute.Unfortunately, thishonest and brave employee of EOBI, who have saved EOBI by the cruel claws of the then Chairman EOBI,Zafar Iqbal Gonadal strong and corrupt Mafia by CP. No. 06/2011 in the Supreme Court of Pakistan, but he was not much appreciated by EOB, as he deserved.
During the 4 yearlong nerve breaker legal battle and struggle against the powerful Mafia of Zafar Iqbal Gondal and Co. his financial condition, health and personal life was severely affected. However, he was given every possible offers,incentive and greed to stop him from his valid legal struggle against corrupt Mafia, but he clearly rejected all such offers and negotiations like a true and upright man.
Sufi soul Syed Mubashir Razi,having soft hearted and compassionate personality and apart EOBI, he is a true book lover,extensive reading especially onreligion, philosophy, history and law are his favourite subjects.He is obsessed with buying and reading new and rare books by world-renowned authors on his favourite subjects and he has a personal library. He is man of great character and an important asset of EOBI.
How sad that the brave,honest and selfless man of EOBI Syed Mubashir RaziJaffery,whohave saved the poor workers national welfare organization EOBI by a long legal struggle and fighting against most corrupt and powerful Mafia of EOBI,is employed on a small positionas Senior Assistant (Grade 4) in EOBI.
Therefore,Syed Mubashir Razi can be called EOBIs’jewel in terms of his long struggle to save EOBI and against massive corruptionand corrupt elements and their oppression in the Institution.
Non recovery of EOBI 168 official Vehicles and laptops
During 2010 to 2013 then Chairman EOBI Zafar Iqbal Gondalhad arranged threemonth training program for these 400 illegally recruited officers at Hamdard University Karachi on heavy expensesof EOBI along with boarding and lodging facilitiesat a hotel. The Ex.Chairman EOBI Zafar Iqbal Gondalhas also provided 268 brand new vehicles to illegally appointed beloved and influential officers under a Car loan Scheme like Suzuki Bolan, Suzuki Mehran, Suzuki Cultus and Toyota Corolla GLI with the registration of Government of Pakistan green number plates (GP) and also brand new laptop computers provided to them.In this regard, Rs. 932,000 each was paid by EOBI to these beloved illegal appointed officerson monthly deduction basis.
But following the announcement of the Supreme Court of Pakistan decision on CP 06/2011on 17 March 2014, the sacked officers fled away along with 168 EOBI official vehicles and laptops. Due to the lack of interest and great negligence and connivance of thenEOBI Management. The next Management has set up a Recovery Cell for recovery of these vehicles and laptop.The Recovery Cell has with great diligence and hard work has collected the records of all Non-recoveredvehicles and laptops and worked out a recovery mechanism and presented its report to the Management for further action. But the Management at the time once again put this important issue on hold.In this regard, it is a matter of concern that despite the incidents of terrorism in the country, the unauthorised use of EOBI official and bearing Government of Pakistan GP No. plates vehicles by the sacked officers may lead to the use in illegal and terrorist activities.
After allin May 2019 on the strong directives of Board of Trustees a FIR No.188/2019 has registered at Firozabad Police Station Karachi on May 2019against168 officers fleeing with EOBI officials cars and laptops.
But due to the usual lack of interest and negligence of the EOBI Management the important issue of Recovery of EOBI official vehicles and laptops is once again laying in cold storage and EOBI Management fails to recover hundreds of official vehicles and laptops after 8 long years.Due to which a huge amount of EOBI Pension fund is stuck.
Non-Recovery of EOBI heavy dues/arrearsfrom defaulters Employers
According to a conservative estimate, many registered employers have huge dues/arrears of about Rs. 10 billion of EOBI Contribution, but due to the lack of interest and negligence on the part of Board of Trustees and EOBI Management, they have failed to recover these huge dues/arrears from defaulters Employers. According to a conservative estimate, EOBI has a liability of about Rs.10 billion on defaulters registered employers.
This alarming situation of the EOBI suggests that the employees,workers and labours for whom this welfare Institution was established for protection of Old-Age have been completely forgotten but the EOBI dishonest and corrupt officials became rich and rich through employeescontribution trust money.
EOBI faces great challenges
EOBI, being the national Pension Institution for private sector’s employees, workers and labour arepresently facing enormous challenges and hardship for the last few years. Which includes the suspension of CompulsoryMatching Grant by the Federal Government since 1995, Non-registration of large numbers of employers of the country (industrial, business, trading, educational, welfare and otherorganizations), which comes under the purview of Employees’ Old-Age Benefits Act 1976.
Constitution of new Boardof Trustees of EOBI
The present EOBI Board of Trustees, which was formed in 2013 by the Ministry of Overseas Pakistanis and Human Resource Development, Government of Pakistan for the period of two years, but it is still illegally in function, despite the expiration of its two-year legal term and the FederalGovernmenthas failed to nominate the new members for the Board of Trustees. As a result, numerous serious legal, administrative and financialissues are
arising in the Institution.
EOBI has become inherited,top key posts vacant
Appointment of a permanent Chairman of EOBI
EOBI has for long time been deprived of a permanent Chairman with the expertise and required qualification,experience in the field of Management and investmentof worth Rs.40 billion EOBI Pension fund. The Chairman of the Institution is appointed by the Federal Government.
Recently, the Chairman EOBI,Mr.Shakil Ahmed Mangnejohas also been transferredon 27th April 2022 as Additional Secretary Prime Minister Office Islamabad, he is counted among the most capable, experienced and honest officers. If he been given the opportunity to complete his three-year term as Chairman, he could have pulled the EOBI out of the serious crisis and onto the path to success. in his short tenure of a few months had implemented of necessary reforms and supremacy of merit and also removed the corrupt officers from the key posts.Therefore, the FederalGovernment should immediately appoint a new Chairman of EOBIon permanent basis.
Appointment of DG/Investment Advisor
Thekey position of DG/Investment Advisor of EOBIhas also been laying vacant for a long time, which caused great loss of investment incomeand as a result EOBI Pension fundTrust is facing great loss and deficit.
Appointment of two Director General, Operations
The Post of both Director General Operations, South(Sindh and Balochistan) and North(Punjab,KPK and GB)are also vacant for a long time to run the smooth function of field operationsof EOBI across the country, as a result the core function of EOBI,Registration of Employers and their employees,workers and labours, collection of monthly contribution and disbursement of monthly pension and other important affairs are being severely affected.Due to the absence of both the Director General Operations, the corrupt field officers are taking full advantage of this golden opportunity to collect huge extortion and bribe from the registered and new employers through heavy Demand Notices.
Severe shortage of manpower in EOBIandneed urgent recruitment
Although EOBI has always faced the required manpower,but in recent years due to massive retirement of the employeesof the Institution and no timely promotion of deserving senior and experienced officers and a regular ban on fresh recruitment by the Federal Government, EOBI is presently working on (about 700 employees ) one third of itsapproved strength,so in view of severeshortage of manpower,EOBI urgently needs a reasonable number ofqualified,experienced and trainedprofessional manpowerfor the transformation of EOBI into a modern service delivery organization.
EOBI Publicity and Awareness Campaign
It is my personal experience during my four decades service in the Institution.EOBIpast and present Management due to lack of interest and despite having adequate publicity funds have never been interested to provide necessary information and awareness regarding the EOBI Pension Scheme for private-sector employees, workers and labour. How sad that thousands of employees, workers and labours and their survivors have been deprived of their pension rights due to a lack of timely information and awareness about EOBI’s pension scheme.
During my long service as PRO EOBI and as In-Charge Publicity Department of EOBI, I, always draw the attention of the Management and time to time presented different Publicity proposals and ideas during official meetings and conferences to the Management to launch a regular basis awareness campaign for the Employers and employees communities through print media, posters, pamphlets, booklets write-ups, advertisements, articles, interviews and social media, conducting seminars, workshops and establish an EOBI FM Radio Station “My Pension”, setting up an Information/helpdesk at EOBI Head Office including all B&C and Regional offices throughout Pakistan, and to make more efficient and effective EOBI Toll-free No.080003624.But unfortunately, no EOBI Management has paid no heed to it.
After my retirement in February 2020, not only EOBI Publicity Department has been shut down and very important Publicity records, documents sold photographs and important publicity material were discarded in a godown.How strange that in an era of fast mass media, communications and information technology, the national welfare Institution EOBI, is being run without any media Department.
As a result, EOBI does not exist in mainstream media and social media, and thousands of employees, workers, labours and disabled Insured Persons and pensioners are suffering for their legitimate rights of EOBI Pension.
The important requirement of time is thatEOBIManagementmust immediately set up its Media Department and launch a country wide public awareness campaign to provide necessary information on benefits under the EOBI Scheme and make sure of registration of all employers and their employees, workers and labour coming under the purview of EOB Act 1976.
Urgent Reforms and Legislation in EOB Act 1976
Restoration of Federal Government Matching Grant
Now is the time for the Federal Government to step forward to restore the Matching Grant of EOBI which has been stopped since 1995 for the growth and sustainability of EOBI Pension fund and to expand the scope of EOBI Pension Scheme.
To achieve this goal, the Federal Government urgently needs to make necessary reforms and required legislation in EOB Act 1976.
EOBI Pension Scheme transform into a universal Pension Scheme
Present EOB Pension Scheme is a discriminatory Pension Scheme, in which the condition of 10 or more employees has been imposed. As a result, millions of employees, workers and labours are deprived of their right to pensions. Now is the time that the EOBI Pension Scheme must be transformed into a Universal and mandatory Pension Scheme by including every 18-year Pakistani bread earner, serving in the private sector, informal sector, self-employed or home-based workers in the great interest of the nation.
Introduction of Self Registration Scheme
By removing the present condition of Registration in the EOBI Pension Scheme through their employers and Organisations.EOBI immediately introduce a Self Registration System for employees, workers and labours working in the informal sector and self-employed, like neighbouring country Government-backed Pension Scheme “Atal Pension Yojana” (APY) or National Social Security Fund (NSSF) of eastern African country Republic of Kenya, which are a Contributory and Universal Pension Schemes and applicable to all citizens working in the organized and unorganized sectors.
Increase in rate of EOBIContribution
Due to the huge imbalance in the collection of contributions and the payment of pensions and the increasing number of pensioners over time. The majority of employers are paying EOBI contribution as per the previous ratesRs.170/ p,m. per Insured Person, as per the year 2005 Minimum Wage, there is an urgent need to increase the existing rate of 6% EOBI contribution to 10% (Employer share 8% and employee share 2%), due to the worst inflation and rapid depreciation of the rupee for the growth and sustainability of the EOBI Pension fund Trust.
To maintain the viability and long-term survival of EOBI, it is imperative that the Federal Government immediately restore the Matching Grant and all registered employers with EOBI must pay a 6% regular monthly contribution @ Rs.1,500 p.m. per Insured Person to EOBI, as per current Minimum Wage of Rs.25,000.
Clean EOBI by corrupt and incompetent elements
A series of scandals and frauds have severely damaged the image and reputation of EOBI.Therefore, in order to save EOBI, it is imperative that a check and balance and accountability system be implemented in the institution and that it the cleansed of corrupt elements.
Officers involved in MegaScandal, embezzlement, fraud and abuse of power should be immediately dismissed and huge moneyofEOBI Pension fundTrustshould be recovered from them.
This looted money should be deposited in the EOBI Pension Fund Trust by auctioning properties and assets of all the corrupt officers who looted the EOBI resources.
The primary duty of EOBI is to provide Pension benefits to the employees, workers and labour of the country and their survivors.Therefore, it is the responsibility of the EOBI to provide guidance and assistance to them, helpdesks should be established in Head Office including in all B&C and Regional Offices throughout the country and they should be treated with respect and dignity.
EOBI should be made an ideal National welfare Institution by providing hassle-free service to the Employers, Insured Persons and Pensioners.EOBI is a Trust Institution therefore, it is imperative that each of its officers is examined the age, educational qualification, relevant degree, experience, domicile and prescribed federal quota.All illegal deputation and illegal appointee officers should be repatriated and dismiss and promotions should be given to the deserving, senior and experienced officers and employees of EOBI.
The great challenge for the new Government
This is a great challenge for the newly established Federal Government to fulfil its constitutional responsibilities and realize the serious problems faced by the millions of EOBI present and future pensioners, Federal Government must pay its full attention to the solution of their legitimate issues and give a respected and dignified place to the EOBI Insured Persons and Pensioner in the society.
If the federal government does not address the current alarming situation faced by the EOBI, then the destruction of this national welfare institution is certain. Due to this alarming situation, the existence of EOBI seems in danger! Consequently, the total loss will be borne by the millions of pensioners, Insured Persons/future pensioners including disabled and widow pensioners.
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