University of Karachi;  Legitimate payments, including pensions, will stop in case of levy encashment, Deff warns

Karachi: The Director of Finance of the University of Karachi has warned the university administration that in the current financial situation of the university, if 15 crore rupees are released in the form of leave encashment to the teaching and non-teaching employees, then the utility bills, retirement funds, pensions, part Other legitimate payments including time (part-time) faculty compensation, vendor payments, and medical payments will cease.

The federal and provincial authorities have already declared levy encashment illegal in University of Karachi and recommended to stop it, while the current financial situation of the university cannot afford this payment. Recommendations have been prepared in which the assistant registrar general, additional registrar and registrar recommended to give leave encashment to the employees for the financial year 2022/23 while one such recommendation was made by the President and General of Anjuman Utsari University Karachi. The above-mentioned summary, which was also made by the secretary, has come out at a time when the employees of the University of Karachi are on a continuous protest and pen-dropping strike to obtain leave encashment.

In this regard, in the summary received by “Express”, it has been said on behalf of the acting director of finance of the university that the leave encashment payments made by various government institutions and authorities in University of Karachi were called unauthorised, irregular payment and unjustified. in which
Auditor General, NAB, Department of Universities and Boards, HEC Islamabad and Governor Secretariat are also included, including the audit reports from 2013 to 2021.

According to this, payments of 130.662 million rupees, 78.091 million rupees, 134.27 million rupees and 157.917 million rupees were made at different times, while on June 4, 2021, the Departmental Accounts Committee held under the chairmanship of Secretary Universities and Boards found the payment of 99.734 million rupees illegal. According to the summary of Director Finance, it has been stated in the NAB advisory of 2017 that no government law or financial rules support this, that employees should be given levy encashment on an annual basis. Further, according to the advice of HEC Islamabad, there is a regulation against house sale, orderly allowance and levancashment in provincial charter universities.
In addition, in this regard, when “Express” contacted the chairman of Higher Education Commission of Pakistan, Dr. Mukhtar Ahmed, he said that “if the universities have enough funds even in the current economic situation, to pay salaries and other basic expenses.” After that, if they pay the levy encashment, it is their will, but the commission can never allow that the levy encashment be paid from the funds given by it, our funds are for pension and salaries, it is not our responsibility to give allowances.

It should be noted that the Governor House has justified the advice of HEC Islamabad through a letter dated 23 June 2022. Meanwhile, the Director of Finance of University of Karachi has recommended that formal permission be taken from the Government of Sindh in relation to the loan encashment. Permission should be given to other universities of Sindh including University of Karachi, however levencashment cannot be paid by government grant or university from its own resources.

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