After four years of protests by seamen, the Centre on Thursday approved reimbursing Rs92.78 crore which was lost in the alleged Seamen Provident Fund (SPF) scam in 2002.
MUMBAI: After four years of protests by seamen, the Centre on Thursday approved reimbursing Rs92.78 crore which was lost in the alleged Seamen Provident Fund (SPF) scam in 2002.
The government approved the recouping the amount as a welfare measure to protect the interest of seamen. The Union Minister for Shipping, Road Transport and Highways TR Baalu said, “This step is taken to ensure that seamen are not deprived of their hard-earned money and reasonable return.”
Baalu expressed wish that the decision would restore their confidence.
He said that the government had also approved an amendment to Seamen’s Provident Fund Act 1966 to ensure that such liabilities arising as a consequence of the investment management of the Seamen Provident Fund are not passed on to the Government, for which a Bill will be introduced in Parliament, soon.
The Seamen’s Provident Fund Scheme, 1966 framed under the Seamen’s Provident Fund Act, 1966 (SPF Act, 1966) was introduced to provide Provident Fund for all seamen. Abdulgani Serang, general secretary, National Union of Seafarers of India, told DNA, “The amount will provide the Seamen and their families the security edge of getting the financial support after retirement.”
Serang said they had decided to pay a minimum of Rs 1,500 to Rs35,000 seamens working with both the Indian and foreign vessels.
He added: “The government has extended a great help. Though seafarers are not listed in the government’s policy-making, we could convince the government for recoupment of the amount lost in the scam.”
M Rao, an employee with the Dredging Corporation of India, said: “The day is meant to celebrate after the government has agreed to give us back our hard-earned money. The Seamen Provident Fund money will give the seamen the security after retiring from the job.”
Another seaman said: “The union really helped us. It has sent letters at individual level from 10,000-odd seamen. That has put pressure on the government.”
Troubled waters
On 2002, citing wrongful deployment of Rs92.78 crore belonging to the Seamen’s Provident Fund, the Director-General of Shipping lodged a criminal complaint with the Banking Securities and CBI.
This decision follows the loss of around Rs 100 crore that the fund has suffered through investment in government securities through brokers.
The DG, Shipping, who is also Chairman of the Seamen’s Provident Fund (SPF), called an emergency meeting of the Board of Trustees of the fund.
The board decided to “relieve” Anup Kumar Gond, Commissioner of SPF organisation. It does not have the power to sack the commissioner, a government-appointee
The Commissioner, it is alleged, has been dealing with Sailesh Mehta, Ketan Seth and Sanjay Aggarwal, all of whom are also associated with the controversial broking firms, Home Trade and Gilt Edge.
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