SUKKUR, Aug 12: The Sukkur Municipal Corporation (SMC) and the Sindh finance department have failed to work out a plan to resolve the financial crisis of the SMC.

During discussion, Shakeel Ahmed, special secretary of the finance department, pointed out that a special grant of Rs200 million could not be released because the previous grant was used by the corporation on payment of salary of new recruits and on payment to contactors for development schemes which the labour union said was unjustified.

As the news about the failure of talks reached here, employees of the corporation who have not received their salary for three months announced to hold a new round of protests.

According to the union, employees will again paralyse the drainage system as they had done last week.

According to the union’s spokesman, Federal Minister for Religious Affairs Syed Khursheed Ahmed Shah and Senator Islamuddin Shaikh had promised that Rs200 million would be paid by the Sindh chief minister to enable the corporation to disburse three month’s salary and pension because of Eidul Fitr.

SMC Mazdoor Union (CBA) president Ali Mardan Shaikh told reporters that the special secretary had informed a team of employees that the corporation would get the amount for payment of salaries and pension and other expenses from its share in Octori and Zila Tax.

He said the grant could not be released because the Sindh government was itself facing financial problems.

He said new recruitments and expenses on development schemes had caused financial problems to the SMC.

He said the provincial government had released a special grant of Rs250 million for Sukkur, Rohri, Pano Akil and Salehpat earlier this year.