A major clean-up of government payrolls in Hyderabad has exposed shocking gaps in oversight, leading to the identification of nearly 7,000 outsourcing, part-time, and contract workers marked for removal due to suspected large-scale salary fraud.
Digital Verification Uncovers Collusion and Fake Identities
The scandal came to light after the Telangana finance department initiated a drive to digitally collect the Aadhaar details of all such employees. This scrutiny revealed alarming signs of collusion, the use of fake identities, and questionable wage payments. Sources indicate that patterns emerged suggesting certain employees and agencies worked together to create bogus employee records and bank accounts.
The fraudulent operation involved siphoning off salaries from multiple departments and sharing the illicit proceeds. According to official data, approximately 3.75 lakh outsourced and contract employees have registered their details on the government's online platform. Last month, the state government ordered the suspension of salaries for all workers who failed to submit their Aadhaar-linked information.
Scale of Fraud Could Run Into Thousands of Crores
While the exact amount of misused funds is still being calculated, a source close to the investigation warned that the figure "will run into thousands of crores if more details become available." The government has issued a strict warning against processing any wage payments without proper Aadhaar linkage. It also emerged that some department officials attempted to bypass the new system by routing salaries through traditional heads of accounts, prompting a firm reprimand from the finance authorities.
The verification exercise was launched in July with the formation of a special committee. This committee was headed by former chief secretary A Santhi Kumari and tasked with ascertaining the true number of outsourced employees. Over four months, Aadhaar-linked data was collected online from all government departments and corporations.
Forensic Audit and Vigilance Probe Underway
The data collection process uncovered that salary payments had been made to numerous individuals who were not actually working at all. A forensic audit is now expected to reveal even more instances of fraudulent claims. Meanwhile, vigilance officials have been deployed across various departments to gather additional evidence and details.
In a related development, with the recent conclusion of sarpanch elections, the state government is preparing to release pending dearness allowance to its legitimate employees next month. The payroll clean-up operation highlights a critical need for systemic reforms in the management of contract and outsourced staff within the government machinery.
