The National Audit Office (NAO) has exposed the wastage of millions of rupees in a failed initiative to issue new Identity Cards (ID) and re-register members of the Employees’ Provident Fund (EPF).

According to the NAO, Rs. 12.61 million has been spent on 15,000 cards while Rs. 17.67 million has been used to purchase 35 account balance-checking machines (kiosks) for the project.

Notably, these assets have not been utilised for the intended purpose nor managed efficiently, it is revealed.

The audit has revealed that the 15,000 purchased cards have remained unused in the IT Department during the audit and two out of the 35 machines have been disposed of. 

Furthermore, 25 out of the remaining 33 idle machines have been brought to the head office for disposal.

The NAO has observed that funds from the EPF had been wasted due to the failure to identify proper needs, resulting in the purchase and inefficient utilisation of assets for a project that is currently inactive.

In response, the EPF management had explained that, despite printing 15,000 kiosk ID cards costing Rs. 600 each for members’ balance checking, they had revised computer programmes to allow balance verification through kiosk machines using fingerprints at no extra charge.

They had also noted that 35 kiosk machines had been installed nationwide, with 14 currently at the head office after more than five years. 

Additionally, eight fingerprint scanning machines have been distributed to eight labour offices.

The NAO had recommended that projects should commence with proper planning and study, emphasising on the need for effective expense management when using funds from members.