Give civil servants cash, not LTC to avoid graft--ET 04.11.2013
The government claims to have unearthed a scam, involving Rs 2 crore or more, in how its employees and those of state-owned companies use their leave travel compensation (LTC). This is a component of their income, which may be claimed after travelling and producing the tickets for the journey undertaken. The reality, sleuths tracking the case have found, is different.
In some cases, the babus involved do not travel at all, but submit forged tickets to make their claim. In other cases, people choose bizarrely complex routes — Delhi to Jaipur via Brazil being not uncommon — to inflate bills and claims. In others, people travel cattle class, but are billed as flying business, with the excess funds used to travel overseas or more often.
State-owned banks are thinking of changing the rules that govern the LTC regime, but that will not help. What could, is to scrap the allowance altogether and pay the money as a part of bureaucrats' salaries.
There is no point, apart from ducking a little bit of tax, in distributing travel or other allowances separately from the pay cheque. All payments should be consolidated into one, the final pay cheque can be bumped up a little to compensate for the additional tax bill, and paid to public servants. With the additional money, bureaucrats can choose to travel, or eat out, or buy fancy gadgets, or simply stash it in the bank.
By earmarking chunks of salary purposewise, including the LTC, the state tries to modify employees' spending behaviour.
For example, if it weren't for the LTC, some people would not travel every year, as they are compelled to do now, just to claim their dues. Others might choose to fly airlines other than Air India, which is now compulsory. The government has to stop behaving like a nanny and trust its employees to spend wisely.
That way, at least one avenue for graft will be eliminated.
In some cases, the babus involved do not travel at all, but submit forged tickets to make their claim. In other cases, people choose bizarrely complex routes — Delhi to Jaipur via Brazil being not uncommon — to inflate bills and claims. In others, people travel cattle class, but are billed as flying business, with the excess funds used to travel overseas or more often.
State-owned banks are thinking of changing the rules that govern the LTC regime, but that will not help. What could, is to scrap the allowance altogether and pay the money as a part of bureaucrats' salaries.
There is no point, apart from ducking a little bit of tax, in distributing travel or other allowances separately from the pay cheque. All payments should be consolidated into one, the final pay cheque can be bumped up a little to compensate for the additional tax bill, and paid to public servants. With the additional money, bureaucrats can choose to travel, or eat out, or buy fancy gadgets, or simply stash it in the bank.
By earmarking chunks of salary purposewise, including the LTC, the state tries to modify employees' spending behaviour.
For example, if it weren't for the LTC, some people would not travel every year, as they are compelled to do now, just to claim their dues. Others might choose to fly airlines other than Air India, which is now compulsory. The government has to stop behaving like a nanny and trust its employees to spend wisely.
That way, at least one avenue for graft will be eliminated.
http://economictimes.indiatimes.com/opinion/editorial/give-civil-servants-cash-not-ltc-to-avoid-graft/articleshow/25196817.cms
LTC scam: CBI seeks Rajya Sabha MP’s fake travel bills--TOI
NEW DELHI: The Central Bureau of Investigation (CBI) approached the Rajya Sabha secretariat on Monday seeking documents related to fake travel bills allegedly submitted by Janata Dal (United) MP Anil Sahani against whom a case has been registered for making such claims. The agency has registered its first FIR in the leave travel concession (LTC) scam against the MP for allegedly siphoning off around Rs 9.5 lakh by submitting fake air tickets and boarding passes.
Besides Sahani, Air India customer service agent Rubina Akhtar and Lajpat Nagar-based travel operator Air Cruise Travels Private Ltd have also been named in the FIR in the scam in which LTC claims were forged for travel on state-run carrier, Air India. Sahani has refuted the allegations claiming that it was he who had complained to the authorities about 20 fake tickets being submitted in his name. He has alleged that it was his personal assistant who had submitted these tickets for claims but no money was ever transferred to his account.
CBI has alleged that Sahani made false claims of approximately Rs 9.5 lakh for seven business class return air tickets, costing nearly Rs 1.34 lakh each, to Port Blair in December 2012 using fake air tickets and boarding passes for himself and six aides, the sources said.
The agency has registered a case of cheating and forgery among other charges under Indian Penal Code (IPC) and relevant provisions of the Prevention of Corruption Act.
CBI has alleged that the MP purchased seven return e-tickets in connivance with the tour operator and the Air India employee. He also allegedly used online service to get boarding passes using web check-in facility.
Sources said just before the boarding time, these boarding passes and tickets were allegedly cancelled using the sign-in code of Akhtar, the Air India customer service agent, and the money was refunded with negligible deduction. The e-tickets and boarding passes, which were earlier issued, were allegedly submitted to claim the travel expenses by the MP.
Even though no expenses were incurred by Sahani, he allegedly claimed the amount using the e-tickets and boarding passes that were cancelled.
LTC scam: CBI seeks Rajya Sabha MP’s fake travel bills--TOI
NEW DELHI: The Central Bureau of Investigation (CBI) approached the Rajya Sabha secretariat on Monday seeking documents related to fake travel bills allegedly submitted by Janata Dal (United) MP Anil Sahani against whom a case has been registered for making such claims. The agency has registered its first FIR in the leave travel concession (LTC) scam against the MP for allegedly siphoning off around Rs 9.5 lakh by submitting fake air tickets and boarding passes.
Besides Sahani, Air India customer service agent Rubina Akhtar and Lajpat Nagar-based travel operator Air Cruise Travels Private Ltd have also been named in the FIR in the scam in which LTC claims were forged for travel on state-run carrier, Air India. Sahani has refuted the allegations claiming that it was he who had complained to the authorities about 20 fake tickets being submitted in his name. He has alleged that it was his personal assistant who had submitted these tickets for claims but no money was ever transferred to his account.
CBI has alleged that Sahani made false claims of approximately Rs 9.5 lakh for seven business class return air tickets, costing nearly Rs 1.34 lakh each, to Port Blair in December 2012 using fake air tickets and boarding passes for himself and six aides, the sources said.
The agency has registered a case of cheating and forgery among other charges under Indian Penal Code (IPC) and relevant provisions of the Prevention of Corruption Act.
CBI has alleged that the MP purchased seven return e-tickets in connivance with the tour operator and the Air India employee. He also allegedly used online service to get boarding passes using web check-in facility.
Sources said just before the boarding time, these boarding passes and tickets were allegedly cancelled using the sign-in code of Akhtar, the Air India customer service agent, and the money was refunded with negligible deduction. The e-tickets and boarding passes, which were earlier issued, were allegedly submitted to claim the travel expenses by the MP.
Even though no expenses were incurred by Sahani, he allegedly claimed the amount using the e-tickets and boarding passes that were cancelled.
Following are few links related to LTC scam
http://importantbankingnews.blogspot.in/2013/11/revised-guidelines-issued-for-ltc-for.html
http://importantbankingnews.blogspot.in/2013/10/misuse-of-ltc-facility-by-banks.html
http://importantbankingnews.blogspot.in/2013/09/the-great-ltc-racket.html
http://importantbankingnews.blogspot.in/2013/08/fake-or-inflated-ltc-bill-payment-to.html
http://importantbankingnews.blogspot.in/2013/08/see-how-lic-staff-claimed-leave-travel.html
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