Then Minister for Industry (MoI) Mahendra Ray had appointed Mahato to the top post of the ailing state-owned cigarette producer last year. [break]
Though the factory requires 20 varieties of tobacco to produce cigarettes, only 12 varieties are available in the factory. In absence of eight varieties of tobacco, company´s trademark cigarettes can´t be produced. Around 160 tons of tobacco worth Rs 40 million has been lying unused in the factory godown with the shut-down of 55-year-old factory that employees over 1,000 workers. The factory needs at least Rs 250 million to resume operations in full swing with the arrangement of required raw materials, sources said.
Employees alleged that Mahato has not been actively present in the office since April after embezzling Rs 720 million received from sales of 11 kattha of land owned by the factory. Mahato was assigned to look after all administrative works of the factory.
“He hasn´t given any details of expenditures from the fund. He is sitting in the capital without any formal contact with the factory,” said an employee.
Responding to the suspicious behavior of Mahato, employees of JCF have formally approached MoI seeking action against him. “Though we are regularly informing about the situation in the factory to MoI, no officials are interested in resolving the problem that has pushed the factory to the brink of collapse,” said Madan Thakuri, an employee.
He said Ramasish Gupta, chairman of the board of directors, has also been absent for last six months even though he is enjoying all facilities entitled to him as per his capacity.
Deputy General Manager Ramsawrgatha Yadav said that factory was suffering a loss of Rs 80 million a day with the closure of operations. “We have no options but to declare a formal closure if the situation does not improve over next few days,” said Yadav. He said that in absence of the manager and chairman, noone can take any decision.
JCF, which produces popular brands such as Yak, Gaida, Derali, Laliguransh, Lahure, Sayapatri, and Kasturi, was one of the largest tax payers to the nation until 1990.
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