Sindh Secretariat Complex remains a distant dream

Amid irregularities, investigations and losses, the mega project has been delayed by four years

Owing to reports of several administrative irregularities, the Sindh Secretariat Complex mega project - aimed at housing offices for all departments and subsidiaries of the Sindh government - has been at a standstill for over four years.

As a result, not only has the cost of the project increased manifold, but millions of rupees are also being spent every month in rent for the private office spaces the provincial government has occupied in the absence of a secretariat complex.

Under the said mega project, two secretariat complexes, namely Sindh Secretariat Complex 7 and Sindh Secretariat Complex 8, are to be constructed on either side of the Sindh High Court. Together, they consist of 10 buildings, of which two buildings will have 15 storeys while the rest will have ground plus five floors.

While the initial cost was estimated to be around Rs9.4 billion, it has climbed several figures in the last four years of delay.

The project, which also includes parking and other facilities for over 1,000 cars, was approved by the Planning and Development (P&D) Board in April 2012. In November of the same year, the project, with the Services and General Administration Department’s approval, was eventually added to the Public Sector Development Programme with budget allocation in the annual development programme.

Inquiries and irregularities

Official records disclose that a total of Rs1.06 billion had been spent on Sindh Secretariat 7 until June 2019, whereas Rs210 million was spent on Sindh Secretariat 8, during the same period.

But several administrative irregularities started to emerge following the project’s first tender in 2014.

According to a report by the investigation committee headed by Akhtar Hussain Dawach, a Works and Services Department officer, the contract for constructing the basement and 15 floors of Sindh Secretariat 7 was awarded to the United Construction Company.

Several violations of Sindh Public Procurement Rules were reportedly made in the process, such as engaging a sub-contractor, permission of insurance guarantee, non-receipt of payment to the contractor in terms of mobilisation and secured advance.

Per the report, the contractor’s work was worth Rs374 million, but the project director had spent Rs678 million, out of which over Rs150 million was mobilised allowance and more than Rs153 million was the secured advance.

In addition, a faux merger of two companies was also accepted while awarding contract for the construction of two buildings. In this regard, the work was given to a sub-contractor that eventually failed to qualify for pre-qualification. The company started work nonetheless in January 2017, though it was later halted due to a dispute between mobilisation advance and secured advance.

According to the report, then project director Kamran Asif returned the bank’s security allowance to the contractors despite work not being completed.

The report recommended that all work assigned to the sub-contractor be cancelled, while legal action against Asif should be taken.

When contacted by The Express Tribune, Dawach said he had submitted the committee’s report and his recommendations to the works and services secretary. “The report was submitted in September 2019. According to the current project director, Ghulam Shabir, an action plan will be formulated in the light of the committee’s recommendations.”

On the other hand, P&D sources informed The Express Tribune that the committee’s report was still under consideration.

In this regard, a meeting was held at the works and services secretary’s office, discussing various options for resuming work on the project.

According to sources, the meeting also considered the proposal to allow eligible companies to complete work at the new rate, while companies indebted to the Sindh government should be given a chance upon clearing their dues.

Furthermore, the meeting also decided to issue tenders for the remaining work soon. However, the final decision will be taken at a meeting to be held later under the chief secretary, the source added.

Published in The Express Tribune, September 29^th, 2020.