KARACHI:
Alleged irregularities in development projects have been unearthed after it was revealed that the Karachi Development Authority (KDA) awarded contracts worth Rs 11.33 billion without following the mandatory bidding process. Chief Minister Murad Ali Shah ordered an immediate high-level inquiry into the matter.
According to official sources, the Sindh Contractors Association filed a formal complaint alleging that the KDA had awarded consultancy contracts worth billions of rupees to a private company, Atif Nazar, without publicity or competitive bidding.
Following the complaint, the prime minister formed an inquiry committee to investigate the alleged irregularities.
The investigation will be carried out jointly by Local Government Minister Nasir Hussain Shah and Planning and Development Minister Jam Khan Shoro, according to the official notification. The committee has been tasked with reviewing all consultancy and development contracts awarded by the KDA, particularly those exceeding Rs 11 billion, and identifying any violations of procurement rules and financial regulations.
The complainants alleged that several major development projects, including Karimabad underpass and Munawwar Chowrangi underpass, were awarded without publicity or public bidding.
Documents reviewed by investigators show that the cost of the Karimabad underpass project was initially fixed at Rs 700 million, but was later increased to Rs 3,810 million, allegedly by applying new rates to an earlier tender in violation of rules.
The investigation documents further reveal that continuing work on an old tender, rather than canceling it and republishing it, was considered a “serious procedural violation.”
Declaring Atif Nazar & Company as an “in-house consultant” without due process was also described as a blatant violation of procurement norms, especially since the company was directly allowed to prepare and submit its own PC-1 (project documents).
Sources in the provincial government said CM Shah has ordered that the investigation be transparent and impartial, and strict action be taken against those responsible.
They added that the revelation has raised serious concerns about the credibility of the ongoing development works in Karachi.
“There are growing complaints that major city projects are being handed over to favored contractors, leading to cost increases and unnecessary delays,” a senior government official revealed, adding that the government is considering expanding the scope of the investigation to include other ongoing plans.
In the first phase, the investigation will focus on KDA projects in which contracts worth billions were allegedly awarded by circumventing procurement norms, resulting in financial losses to the public exchequer.
Both the Karimabad and Munawwar Chowrangi underpasses have already suffered delays and inflated costs due to these alleged irregularities.
CM Shah has promised to ensure accountability of all development authorities and reaffirmed that “no one found guilty of misappropriation of public funds will be spared”.
