Under privatization, liberalization and globalization policies successive governments let savings of workers and middle class employees under the control of market gambling. The government has washed its hands of the responsibility for paying back the savings, and pension of the workers.
Now, according to this Economic Times report, about Rs 20,000 crore of PF and pension money is gone in IL&FS scam.
“Provident and pension funds of thousands of middle-class salaried people face the spectre of losing thousands of crores of their nest egg as analysts estimate these funds’ investments in Infrastructure Leasing & Financial Services and group companies to be between Rs. 15,000 to Rs 20,000 crore”
“Provident funds are now estimated to be holding 40% of total bond IL & FS group outstanding,’’
“Privately managed retirement funds may be running a bigger risk as these firms have to make good any losses as per the condition laid out by Employee Provident Fund Organization wherever it permitted such funds management.”
Corporate profit mongering is not confined to work place and market place, but is also grabbing at the savings of working class. It is time to wakeup.