Investigation reveals widespread commission fraud in recruitment of outsourced personnel in government departments, corporations, and boards

The State Vigilance and Anti-Corruption Bureau has launched a preliminary inquiry into companies recruiting outsourced personnel in government departments, corporations, and boards. The investigation comes after reports emerged of fake companies collecting crores of rupees in commission from the government by recruiting thousands of employees on outsource.

The issue first came to light during the tenure of the previous government, which had started formulating a policy for outsourced employees. During that time, a cabinet sub-committee was formed to secure the future of outsourced employees. However, the committee could only obtain records of 15 companies out of 125, leading to suspicions that 110 companies may be fake.

The Police had initiated an investigation in the district after a complaint was filed following the publication of the news in a daily newspaper on January 4, 2023. The complaint led to the state vigilance bureau launching a preliminary inquiry into the matter.

It is estimated that 27,633 outsourced employees are currently working in government departments, corporations, boards, and universities in the state. The former government had expressed concerns that fake companies could not have operated without a nexus. To address the issue, arrangements were made for online salary payments to outsourced employees every month, with the amount deposited directly into the respective companies’ accounts. The companies would then pay the salaries to the outsourced employees by taking out their commission.

The state vigilance bureau’s inquiry is expected to shed light on the extent of the problem and bring those involved in the fraudulent activities to justice. The investigation underscores the importance of transparency and accountability in the recruitment and employment of personnel in government departments and affiliated institutions.