Gurgaon: The
MCG is facing questions about how it hires its contract staff, who number seven times more than its official posts, amid allegations that its coffers are being burdened by an unreasonable wage bill.
The outsourcing contract the corporation has with the company that provides the contract staff is itself mired in controversy because of alleged violation of norms. At a recent meeting of the MCG House, a committee was formed to probe the hiring process of contract employees and MCG needs so many of them, 1,750 to be precise, after Ward 34 councillor RS Rathee demanded an inquiry.
The MCG is currently functioning with only 275 staffers, which is less than half the sanctioned strength of 524. But it has hired 1,750 employees through the outsourcing route, which is in addition to 2,000
sanitation workers provided by five private firms. As wage bill to these 1,750 employees, it is paying Rs 3.75 crore every month.
As per records (TOI has a copy), VSS Enterprises, a manpower company based in Sector 4, won the outsourcing contract with MCG in 2015 at a rate of 5% service charge. After the company's contract expired in 2016, it was renewed for another year but without a tender. Before VSS got the contract, MCG had 700 outsourced staff, provided by two companies. But the number went up to 1,750 in the fresh contract.
Sources said the authorities had turned a blind eye towards irregularities in the contract as a close associate of a state cabinet minister owns the manpower company. According to state policy, such contracts are executed at a 2% service charge, much lower than the 5% agreed upon in this case. Also, the service agreement between MCG and the company did not bear the signature of any MCG official.
VSS Enterprises has also not deposited the mandatory security amount — a month's salary of all outsourced employees — after winning the contract, said a source at the MCG office. The amount is refundable without interest after the contract is completed.
MCG commissioner V Umashankar said there is no correlation between vacant posts and outsourced employees as MCG hires outsourced staff based on its workload. Transfer of Huda sectors to the corporation for maintenance has increased the workload on MCG, hence the outsourcing, he explained.
On the issue of service contracts with no signature of MCG officials, he said was unaware of it as it was signed before he took charge. On probing the irregularities, he said the contract was nearing its end and a fresh tender would be issued. "If the outsourced employees are turned away, it will adversely affect the corporation's working. Once a new tender is floated, another company will be selected on the basis on new guidelines for better management," he added.
Asked about the anomaly in the terms of the contract, Pritam Singh, director of VSS, said there could be some confusion at the state government-level. On the issue of not depositing security amount, he said the amount hadn't deposited initially but Rs 1 crore was deposited with the MCG later. State urban local bodies minister Kavita Jain said she was unaware of the details of the contract with VSS Enterprises, but will order a probe if any irregularities are found in the tender terms.
