Engineers accuse syndicate of diverting money from pension fund

AMMAN — A group of engineers on Monday accused the Jordan Engineers Association (JEA) of diverting money from the syndicate’s pension fund, while the association’s president denied the claims.   

In a memo to the JEA, the engineers urged the syndicate’s council to “stop taking money from the pension fund in favour of the social responsibility fund”.

“We urge the association to manage the pension fund’s assets wisely,” syndicate member Raed Haddadin told The Jordan Times.

His colleague, Raed Khatib, agreed, and said that the JEA council was “violating the law by withdrawing money from the pension fund and channelling it to the social responsibility fund”.

“The amount of money withdrawn from the pension fund last year alone stood at JD2 million,” he claimed.  

JEA President Majid Tabba denied that money used for the social responsibility fund was taken from any other fund, but Khatib and other engineers said they had proof that money had been diverted from the pension fund. 

Issam Abu Farha, a representative of the association’s rescue committee, said there should be at least JD600 million in the pension fund according to studies, yet the fund’s value stands at JD200 million. 

“Tens of millions have been withdrawn from the pension fund in favour of illegal accounts and to finance council members’ activities and travels. The money also goes to the social responsibility fund. We will definitely take legal action and other measures in the near future,” he told The Jordan Times. 

Haddadin alleged that the JEA council has “resorted to the engineers’ pockets” to make up for deficits in the pension fund assets. 

“The council does not acknowledge that there is a genuine problem in the pension fund,” he said, noting that 3 per cent of all loans taken by engineers through the syndicate go to the social responsibility fund. 

In a statement, the JEA president said the council will “respond to the memo through legal channels”, noting that the social responsibility fund was established according to the law. 

“The fund was endorsed by a by-law that went through all the legal stages arriving at a Royal Decree,” said Tabba.

He highlighted that the fund serves engineers and their families, in addition to contributing to developing the national community. 

The social responsibility fund, according to the president, is financed through donation campaigns carried out in coordination with official bodies, such as the Jordan Hashemite Charity Organisation. 

In earlier remarks, Tabba stressed the financial strength of the association’s pension fund, noting that its market assets stood at JD400 million.

He underlined that the fund is able to meet its financial obligations. 

The JEA has 130,000 members, 40,000 of whom work abroad.