Even as over 9,000 cases of money laundering and foreign exchange violation charges are pending investigation in the country, the Enforcement Directorate (ED) is facing an acute staff crunch. Things have come to such a pass that the ED has been forced to give 20-25% by way of extra monetary incentives to its existing assistant directors and joint directors for their extra working hours. The ED has 2,064 sanctioned posts out of which only 682 posts have been filled.
The ED has been facing criticism from the public for its dismal performance as it has managed only two convictions in 12 years since 2005 under the provisions of the Prevention of Money Laundering Act (PMLA) through which the agency enforces its mandate.
However, the ED has been shifting the blame for its dismal performance on the lack of staff and infrastructure.
“In order to deal with the staff crunch problem, the ED has started giving 20-25% by way of extra monetary incentives to its assistant directors and joint directors. However, even this initiative has failed to bring any improvement in the agency’s work. There are certain areas where the department needs urgent recruitment of staff. We are generally avoiding taking up ‘small issues’ of money laundering these days due to the staff shortage as we are struggling to complete the cases that we have already taken up,” a senior ED official said.
Over 9,000 cases under money laundering and forex violation charges are pending investigation.
“Given the scenario and the government’s ambition to curb black money, the work of the department has increased manifold, but the shortage of staff has tied its hands. As per the record of the department, the ED has 2,064 sanctioned strength of staff intake, out of which unfortunately, only 33% staff requirements have been filled so far,” the same official cited above told The Sunday Guardian.Even posts of directors and assistant directors in certain regions of the ED are lying vacant. Another ED official said on the condition of anonymity, “We have been writing to the Finance Minister for the appointment of staff, but the ministry has not taken any action to solve the staff crunch crisis.”
“Over 9,000 cases registered under money laundering and foreign exchange violation charges are pending investigation. Almost in half these cases, the ED has not even filed the charge-sheet,” a lawyer who practices in the PMLA Special Court here said. The ED has two laws under which it prosecutes offenders. Of these, the Foreign Exchange Management Act does not carry any criminal liability. It is the PMLA through which the ED mostly enforces its mandate. B.D. Singh, a former assistant director of ED, said: “The swiftness of any institution depends on the training and supply of infrastructure, be it the staff or other facilities. The ED needs new and trained staff.”