TVM co-op bank employee suspended for diverting pension funds of deceased beneficiary

Pangode (Thiruvananthapuram): A female bank employee has been suspended for allegedly diverting funds from the account of deceased beneficiary of the Old Age Pension Scheme.

The fraud was uncovered following a complaint filed by Shanawaz, son of the late Shihabuddin of Shaina Manzil, Mulakittakadu, at Pangode Panchayat in Thiruvananthapuram, to authorities concerned.

How did fraud happen?
The old-age pension entitled to Shihabuddin was being distributed through the Service Cooperative Bank. Shihabuddin passed away on August 28, 2023, and his death was registered by his relatives at the panchayat.

However, the relatives later found through bank documents that the pension in Shihabuddin’s name continued to be distributed until February this year, despite them not receiving the pension amount. Furthermore, no notification was issued by the Cooperative Bank to halt Shihabuddin's pension. Upon investigating with bank authorities, the relatives found that the pension funds were being diverted.

A letter was sent to the Secretary of the Pangode Service Co-operative Bank requesting an inquiry into the complaint. The bank's investigation revealed that the pension was being misappropriated by the bank employee, facilitated by her husband, who is also the CPM Pangode local committee secretary. 

Following this, Shihabuddin’s relatives lodged complaints with the Pangode Panchayat, the Secretary of the Finance Department, the Director of Vigilance, and the Minister of the Cooperation Department, urging them to investigate the incident.

Meanwhile, it has been reported that the bank employee's husband, who was serving as the Pangode local committee secretary, has been removed from his position, and another area committee member has been assigned the role.