KARACHI: The Sindh High Court (SHC) has said that the secretary of the local government (LG) department has supervisory powers over local bodies and there must be no appointment in the town municipal corporations (TMCs) without his consent.

It also stated that the secretary must also satisfy himself that appointment of new employees was necessary for the smooth functioning of the TMCs as well as to monitor utilisation of funds provided to the TMCs and to ensure that no so-called ghost employee could get salary or pension but only genuine employees.

A two-judge constitutional bench of the SHC, headed by Justice Mohammad Karim Khan Agha, issued these directives in a written order on Thursday while disposing of a set of petitions filed by the employees of the Karachi Metropolitan Corporation (KMC) and TMCs over non-payment of their pension.

The court deplored that the petitioners have been left running from pillar to post to collect their pension entitlement without success.

Directs the official to ensure that no ‘ghost employee’ gets salary or pension

The bench also observed that it was a heartbreaking situation as pension was not charity or a bounty given by the state but an entitlement in recognition of many, often thankless, years of service to an often ungrateful employer.

In fact, it is a human tragedy that the petitioners have been compelled to knock on the doors of court for an entitlement, it added.

Earlier, the SHC was informed that the provincial government was making payments to KMC and TMCs on account of pension, but the TMCs claimed that they had no money for pension.

However, a letter issued by the finance department last month revealed that an amount of Rs125.423 billion has been paid to all the TMCs across the province on the account of salaries, pensions and development structure.

The bench noted that as per the TMCs, they have no money to pay pension and said that it was not possible unless the amount meant for pension has not been used for other purposes.

Thereafter, it directed the secretary LG to ensure that separate pension fund and wing for payment of pension and salaries must be setup at each TMC and to make sure that funds must be used for the purposes which they were meant for.

The secretary LG informed the bench that each TMC was also collecting money independently from Sindh government through various activities which take place within it areas.

Thereafter, the bench directed the secretary a reasonable amount from such collections be paid in a separate account which should be used of payment of pension only.

However, the bench said that such procedure will take time to materialise and for the time being the Karachi mayor has agreed that the KMC will continue disbursing the pension with arrears for next two years to retired employees of TMCs, subject to sufficient funds being provided by the finance department.

It directed finance department to provide any shortfall which the KMC may have in paying those entitled to pension and asked secretary LG to provide a list of all pensioners of TMCs to the mayor within one month.

The bench hoped that the TMCs will become well-financed after two years either through their own collection of funds or any allocation made to them by Sindh or federal governments at which time it would no longer be the obligation of the KMC to pay the pension to retired employees of TMCs.

The secretary LG must play a more active role in the supervision of TMCs for proper utilisation of funds and ensure that such TMCs work for the interest of public and no so-called ghost employee but only genuine employees were paid salaries and pension, it added.

“He shall ensure that TMCs do not employ any person without his consent in writing as the secretary Sindh local government shall satisfy himself that such employees are necessary for the smooth functioning of the TMC”, it added.

The bench also directed the head of Sindh Bank not to open any account in the name of any TMC without approval of secretary local government.

It further said that LG system should operate independently and it is for the KMC and TMCs to ensure that such system run effectively for the benefit of the people of Karachi in accordance with the law.

Published in Dawn, March 14th, 2025