KWSC MD puts brakes on CFO's financial powers

KARACHI:

The managing director of the Karachi Water and Sewerage Corporation (KW&SC) has drawn a clear line around the chief financial officer's financial authority, barring the CFO from releasing major payments to contractors, vendors and suppliers without prior approval from the MD/CEO - a move that has raised fresh questions about the scope of the CFO's powers and accountability.

According to an office order issued on July 24, 2026, a new financial payment mechanism has been introduced at the water utility with the stated aim of strengthening financial discipline, transparency, accountability and internal controls.

Under the new arrangement, the CFO has been authorised to process routine payments, including employees' salaries, allowances and pensions, statutory taxes and government dues, provident fund contributions, utility bills and essential bank charges, without obtaining prior approval from the MD/CEO.

However, a much wider range of payments will require prior approval from the MD/CEO. These include payments to consultants, suppliers and vendors; procurement of equipment and other major financial transactions.