Retired official reappointed with Rs 50000 monthly salary; Traco employees' union expresses disapproval

KOCHI: A retired official was reappointed on a monthly salary of Rs 50,000 at Traco Cable Company, a public sector undertaking that had to sell off assets due to a financial crisis. The contractual appointment was given to a senior official from the marketing department who had previously faced suspension and an investigation. The suspension and the subsequent Vigilance inquiry stemmed from irregularities flagged by the Comptroller and Auditor General (CAG).

The Board of Directors is currently non-functional due to the absence of a Chairman. The reappointment was made in July. Employees state that the appointment was executed by the Managing Director, who holds the position on an interim basis.

Employee unions had opposed the recruitment made under the pretext of securing orders for wiring cables. The company has not received a single order for conductors in four years. Employees also point to the suicide of a staff member who had not received his retirement benefits.

Established in 1964, Traco Cable manufactures conductors and wiring cables for electricity boards. It has units located in Thiruvalla, Pinarayi (Kannur), and Kochi. The company faced a crisis four years ago after orders from KSEB ceased.

To overcome a liability of Rs 425 crore, the company transferred 35.5 acres of land at Irumpanam, Kochi, to Infopark for Rs 200 crore. The Thiruvalla unit, which manufactures conductors, is currently non-operational; only the wiring cable manufacturing unit at Pinarayi is functioning.

“The contractual appointment at Traco, amidst grappling with a crisis, is unauthorised and wasteful. The government and the Department of Industries have been apprised of the details,” said Satheesh Kumar, Secretary, Traco Workmen's Union (AITUC).