Investigation Launched Into KDA’s Alleged Illegal Contracts Worth Over Rs. 11 Billion

A major financial irregularity has surfaced in the Karachi Development Authority (KDA), where consultancy contracts worth Rs. 11.33 billion were allegedly awarded without following the tendering process.

According to reports, several billion-rupee projects were handed out in violation of official rules and procedures, prompting the Sindh Chief Minister to order an immediate inquiry.

A notification issued from the Chief Minister’s Secretariat stated that the investigation will focus on the awarding of over Rs. 11 billion worth of projects to a company named M/s Atif Nazar (Pvt) Ltd without advertisements or formal tenders.

The notification described the matter as “extremely serious”, assigning the inquiry to Minister for Local Government Nasir Hussain Shah and Minister for Planning and Development Jam Khan Shoro, who will jointly oversee the probe.

The inquiry was initiated following a complaint from the Sindh Contractors Association, which accused the KDA of severe financial and administrative misconduct.

According to the complaint, KDA initially awarded only one project — FL-4, F-5, Sector 7-B, Surjani Town — to the firm through proper tendering. However, the same company later received multiple large-scale projects without any public advertisement, bidding, or competition.

The letter further claimed that KDA blatantly violated the Sindh Public Procurement Regulatory Authority (SPPRA) rules and Planning Commission guidelines, relying solely on one consultant.

It was also revealed that the Kareemabad Underpass Scheme, originally estimated at Rs. 700 million, saw its cost first raised to Rs. 1.35 billion and then to Rs. 3.81 billion.

The report alleged that the project was tendered under outdated CSR 2012 rates but later unlawfully switched to CSR 2024 rates, despite the Planning and Development Board’s direction to cancel the old tender and issue a new one.

Serious design flaws were also identified, including water leakage in the underpass walls, yet KDA continued to grant more major projects to the same firm, such as the Manawar Chowrangi Underpass Scheme.

Documents show that KDA had designated M/s Atif Nazar (Pvt) Ltd as an “in-house consultant”, allowing it to prepare and submit PC-1 documents directly.

The Sindh Contractors Association further alleged that most of the company’s projects, including hospitals, schools, and other government buildings, were either incomplete or substandard.

The Chief Minister has directed that all allegations be investigated transparently and strictly in accordance with the law, established rules, and government policy.