Hold statewide audit to check PF fund scams: CVe Shanmugam

CHENNAI: AIADMK member CVe Shanmugam on Monday urged the State government to conduct a comprehensive audit of provident fund (PF) accounts in all municipalities and corporations across the State, citing an alleged Rs 8 crore irregularity in Villupuram municipality.

Raising the issue during the debate on demand for grants for the Municipal Administration and Water Supply Department in the Assembly, Shanmugam, the former minister and Mailam MLA, said a daily-wage employee of the Villupuram municipality was allegedly involved in the diversion of around Rs 8 crore from the PF fund. The irregularity was detected on October 8, 2024, following which a police complaint was lodged, and the employee was arrested, he said.

"Even today, the Rs 8 crore has not been recovered. It is not known whether this is the only irregularity, how long the fraud had been taking place or who else benefited from it," Shanmugam said.

He said the authorities had sought to freeze the accused's assets, but a court had subsequently granted a stay. He alleged that no effective steps had been taken to vacate the stay and secure the assets.

Shanmugam also questioned whether similar irregularities had occurred in other municipalities and corporations and urged the Municipal Administration Department to conduct a Statewide audit of PF accounts.

"Is this confined to Villupuram municipality, or have similar irregularities taken place elsewhere? The department should examine the accounts of all municipalities," he said.

The AIADMK MLA further alleged that several political leaders had benefited from the Villupuram irregularity and claimed that the investigation had been stalled.

Seeking a fresh and comprehensive probe, he urged the government to identify all those involved, irrespective of their political or official position, and initiate appropriate action.

"Those responsible must be brought to book, and the money belonging to the employees must be recovered. A proper investigation should be conducted and action taken against everyone involved," Shanmugam added.