KARACHI:
Alleged irregularities have been uncovered in development projects after revelations that the Karachi Development Authority (KDA) awarded contracts worth Rs11.33 billion without following the mandatory tender process. Chief Minister Murad Ali Shah has ordered an immediate high-level probe into the matter.
According to official sources, the Sindh Contractors Association has filed a formal complaint alleging that the KDA awarded consultancy contracts worth billions of rupees to a private firm, Atif Nazar, without advertisement or tender.
Following the complaint, the chief minister formed an inquiry committee to probe the alleged irregularities.
The survey will be jointly conducted by Local Government Minister Nasir Hussain Shah and Planning and Development Minister Jam Khan Shoro, according to the official notification. The committee was tasked with reviewing all consultancy and development contracts awarded by the KDA, particularly those exceeding Rs11 billion, and identifying any violations of procurement rules and financial regulations.
The complainants said several major development projects, including the Karimabad underpass and the Munawwar Chowrangi underpass, were awarded without advertisement or competitive bidding.
Documents reviewed by investigators show that the cost of the Karimabad Underpass project was initially pegged at Rs 700 million, but was later increased to Rs 3.81 billion, allegedly by applying new rates to an old tender in violation of rules.
The investigation documents further reveal that continuing work on an old tender, rather than canceling and re-issuing it, was considered a “serious procedural violation”.
Declaring Atif Nazar & Company as an “internal consultant” without due process was also described as a blatant violation of public procurement regulations, especially since the company was directly authorized to prepare and submit its own PC-1 (project documents).
Sources in the provincial government said CM Shah had ordered that the investigation should be transparent and impartial, and strict action should be taken against those responsible.
They added that the revelation had raised serious concerns about the credibility of the ongoing development works in Karachi.
“There are growing complaints that major urban projects are being handed over to favored contractors, causing cost escalation and unnecessary delays,” a senior government official revealed, adding that the government is considering widening the scope of the investigation to include other ongoing projects.
In the first phase, the investigation will focus on KDA projects for which contracts worth billions were allegedly awarded by circumventing public procurement rules, thereby causing financial loss to the Treasury.
The Karimabad and Munawwar Chowrangi underpasses have already suffered delays and inflated costs due to these alleged irregularities.
CM Shah vowed to ensure accountability of all development authorities and reiterated that “no one found guilty of misuse of public funds will be spared”.
