KDA allegedly awards Rs11b contracts without tender

Alleged irregularities have been unearthed in development projects after revelations that the Karachi Development Authority (KDA) awarded contracts worth Rs11.33 billion without following the mandatory tendering process. Chief Minister Murad Ali Shah has ordered an immediate high-level inquiry into the matter.

According to official sources, the Sindh Contractors Association lodged a formal complaint alleging that the KDA had granted multibillion-rupee consultancy contracts to a private firm, Atif Nazar, without advertising or competitive bidding.

Following the complaint, the chief minister formed an inquiry committee to investigate the alleged irregularities.

The probe will be jointly conducted by Minister for Local Government Nasir Hussain Shah and Minister for Planning and Development 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 Rs11 billion, and identifying any violations of procurement rules and financial regulations.

The complainants stated that several major development projects, including the Karimabad Underpass and Munawwar Chowrangi Underpass, were awarded without public advertisement or bidding.

Documents reviewed by investigators show that the cost of the Karimabad Underpass project was initially set at Rs700 million, but was later escalated to Rs3.81 billion, allegedly by applying new rates to an old tender in violation of rules.

The investigation documents further reveal that the continuation of work on an old tender, rather than cancelling and re-advertising it, has been deemed a "serious procedural violation."

Declaring Atif Nazar & Company as an "in-house consultant" without due process was also described as a blatant breach of procurement regulations, especially as the firm was directly permitted to prepare and submit its own PC-1 (project documents).

Sources within the provincial government said CM Shah has directed that the inquiry be transparent and impartial, with strict action to be taken against those found responsible.

They added that the revelation has raised serious concerns over the credibility of Karachi's ongoing development works.

"There are growing complaints that major city projects are being handed to favoured contractors, causing cost escalations and unnecessary delays," a senior government official disclosed, adding that the government is considering expanding the scope of the probe to include other ongoing schemes.

In the first phase, the investigation will focus on KDA projects where contracts worth billions were allegedly awarded by bypassing procurement rules, resulting in financial loss to the exchequer.

Both the Karimabad and Munawwar Chowrangi underpasses have already suffered delays and inflated costs due to these alleged irregularities.

CM Shah has vowed to ensure accountability in all development authorities and reaffirmed that "no one found guilty of misuse of public funds will be spared."