PESSI moves court against Suthra Punjab contractor over Rs66.5m dues

FAISALABAD: The Punjab Employees Social Security Institution (PESSI) has started legal action against a contractor working under the Suthra Punjab programme over the alleged non-payment of social security contributions exceeding Rs66.5 million.

Officials said the Directorate of Social Security had issued several notices to Care Services Consortium for payment of outstanding dues linked to Faisalabad city, Saddar and Tandlianwala, but no response was received. The department has now filed a challan before the area magistrate for further proceedings and the imposition of fines.

Director Social Security Chaudhary Ihsan-ul-Haq said the default period ran from November 2025 to date. He said fresh notices were issued on May 11, 2026, directing the company to deposit Rs7.96 million and Rs58.63 million for the Faisalabad and Tandlianwala contracting areas within seven days.

According to Ihsan-ul-Haq, the company did not clear the dues. He added that the matter would soon be sent to the assistant collector for recovery of the amount as arrears of land revenue.

The director further said meetings had also been held with the managing director of the Suthra Punjab Agency regarding payment of the pending contributions, but no headway was made.

Workers' welfare concerns raised

Meanwhile, National Labour Movement Chairman Baba Latif Ansari alleged that about 4,000 daily-wage sanitation workers employed under the company had been denied social security and medical facilities because contributions had not been paid for the past six months.

Ansari said the workers had been assured at the time of recruitment in November 2024 that they would be registered with social security and the Employees' Old-Age Benefits Institution (EOBI), but their contributions were not deposited regularly.

He claimed that, as a result, workers and their families, including wives, children and parents, had been unable to use medical treatment facilities since March.

Ansari said sanitation workers, who carry out duties on roads and dividers early in the morning, often sustain injuries while working but currently do not have healthcare coverage. He also said there were concerns that ration card support of Rs3,000 per month could be halted if contributions and records were not updated.

He urged the authorities to restore the workers' medical and welfare facilities immediately before Eidul Azha, when sanitation staff would be tasked with handling sacrificial animal waste in difficult conditions.

Earlier anti-corruption case

The report also noted that the Punjab Anti-Corruption Establishment had earlier registered a case against the owner of Care Services Consortium and several Suthra Punjab officials over alleged manipulation of digital Key Performance Indicators (KPIs), which caused an estimated loss of around Rs1 billion to the national exchequer.

Several of the accused in that case are currently under arrest, while investigations are continuing.