To crack down on ghost employees

In a big move to tighten the purse strings amid Telangana's financial crunch, Chief Minister A. Revanth Reddy has launched a comprehensive Forensic Audit targeting the state's vast network of contract and outsourcing employees. The initiative, aimed at unmasking "ghost workers" who exist only on paper, promises to plug multimillion-rupee leakages that have long drained public coffers into the pockets of unscrupulous contractors.

The audit zeroes in on approximately 1.4 lakh contract and outsourcing staff across 42 government departments and another one lakh plus outsourcing employees working in various corporations. These workers, drawing salaries ranging from Rs 15,600 to Rs 22,750, fill essential roles such as junior and senior assistants, data entry operators, office attendants, security personnel, sweepers, and sanitation staff.

While contract and outsourcing employees working in the government departments receive payments directly from the government, outsourcing staff in 18 key corporations—like the Greater Hyderabad Municipal Corporation (GHMC), Telangana State Road Transport Corporation (RTC), electricity utilities, Telangana Industrial Infrastructure Corporation (TGIIC), and Telangana Medical Services and Infrastructure Development Corporation (TGMSIDC)—rely on intermediaries. 

Here, the scam unfolds: contractors inflate employee lists with fake names, often using Aadhaar details of friends or relatives, to siphon off salaries for non-existent workers. For instance, a contractor might claim wages for 20 people but pay only 10, pocketing the rest.

Revanth Reddy, grappling with the state's precarious fiscal health, has formed a high-level committee to optimize government finances, curb wastage, and explore new revenue streams. The forensic probe is a cornerstone of this effort, involving rigorous verification of Aadhaar-linked bank accounts to ensure salaries reach genuine employees. Any discrepancies will trigger action under the Revenue Recovery Act, forcing contractors to repay misused funds. Post-audit, the savings are earmarked for enhancing benefits for legitimate employees and pensioners, turning potential losses into welfare gains.

Eliciting his views, J. Venkatesh, president of the Telangana Contract Outsourcing Employees Federation, has urged the government to dismantle the contractor system entirely. "Direct wage payments, bolstered by biometric and facial recognition attendance systems already in place, would eliminate middlemen and ensure transparency," he advocates.

During a pivotal review meeting at the Secretariat on Tuesday, the CM issued stern directives: All departmental secretaries must submit detailed reports on regular, contract, and outsourcing staff by January 26. Heads of Departments (HoDs) are tasked with verifying salary disbursements, Employees' Provident Fund (EPF), and Employees' State Insurance (ESI) compliance by the same deadline, as the government races to fortify its finances before further strain.