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Sindh Chief Minister Murad Ali Shah has ordered a high-level inquiry into alleged irregularities in KDA Rs11.33 billion development contracts that were reportedly awarded without the mandatory tendering process.
According to official sources, the Sindh Contractors Association filed a complaint alleging that the Karachi Development Authority (KDA) granted multibillion-rupee consultancy projects to a private firm, Atif Nazar & Company, without public advertisement or competitive bidding.
In response, the chief minister formed a two-member inquiry committee to investigate the KDA Rs11.33bn development contracts. The committee, comprising Minister for Local Government Nasir Hussain Shah and Minister for Planning and Development Jam Khan Shoro, will review all consultancy and development projects awarded by the KDA, especially those exceeding Rs11 billion, to determine violations of procurement and financial regulations.
The complaint highlighted that major development schemes, including the Karimabad Underpass and Munawwar Chowrangi Underpass, were awarded without public advertisement or fresh tenders. Documents under review show that the cost of the Karimabad Underpass rose sharply from Rs700 million to Rs3.81 billion after new rates were allegedly applied to an old tender, violating established procurement rules.
Investigators Flag Serious Breaches in KDA Tendering Process
Investigators noted that continuing work on an outdated tender instead of cancelling and re-advertising it constituted a serious procedural breach. Declaring Atif Nazar & Company as an “in-house consultant” without due process was also flagged as a violation, as the firm prepared and submitted its own project documents.
Sources said CM Shah has instructed that the inquiry be transparent and impartial, warning of strict action against those found responsible. The alleged violations have raised serious concerns about the transparency of Karachi’s ongoing development works.
“There are growing complaints that key city projects are being awarded to preferred contractors, leading to inflated costs and delays,” a senior government official stated, adding that the scope of the inquiry may be expanded to include other projects.
In the first phase, the probe will focus on KDA’s multi-billion-rupee schemes allegedly awarded by bypassing procurement rules, causing potential financial loss to the provincial exchequer. CM Shah reaffirmed his government’s commitment to accountability, stating that no one guilty of misusing public funds will be spared.
