THIRUVANANTHAPURAM: Kerala Lok Ayukta after considering a petition of pensioners raised concerns over the future of Kerala Automobiles Limited which is in a deep financial crisis and left the decision on the PSU to the governor, legislative assembly and the government.
The Lok Ayukta submitted a special report before the governor as they were unhappy with the action taken by PSU and the government to address the concerns of pensioners.
The governor, on receipt of the special report, shall cause a copy thereof, together with an explanatory memorandum to be laid before the Legislative Assembly, as per the provisions of the Lok Ayukta Act. The report raised questions about allowing the loss-making PSU to continue without any accountability.
Pensioners had approached Lok Ayukta as they were denied retirement benefits after more than five years of their retirement. During the hearing, Lok Ayukta found out that the accumulated losses (Rs 111 crore) were above the net worth ( Rs 100 crore) of the company and the financial crisis resulted in non-payment of salaries and pensions. The company has a liability of Rs 47.6 crore and has a government loan of Rs 73.6 crore.
“From the admitted financial position of the company it is clear that the liabilities of the firm are only on the increase and there cannot be any hope to improve the financial position of the company,” said the report by Lok Ayukta Justice Cyriac Joseph and Upa Lok Ayukta Justice Harun-Ul-Rashid.
“Govt should consider whether such a firm should continue to exist when it is unable to settle the pensionary claims of the former employees and to pay the salary of the present employees,” the report added.