- Report says checks and balances ignored.
- Advance payments totalled over Rs8.56bn.
- Officials face possible civil service action.
KARACHI: A Chief Minister’s Inspection Team report has flagged financial irregularities of more than Rs8 billion in Karachi’s BRT Yellow Line project, terming the matter serious mismanagement.
“The administrative protocols governing contract management, tax deduction and deposition into the government exchequer, and disciplined execution have repeatedly been violated,” the report said.
The inquiry was ordered into financial mismanagement in the Karachi Mobility Project (KMP) for the Yellow Line BRT — designed to connect Quaidabad’s Dawood Chowrangi with Numaish — being implemented with financial assistance from the World Bank.
According to the report, the project includes the construction of the new Jam Sadiq Bridge, Depot-I at Dawood Chowrangi and Depot-II at Indus Hospital, Karachi.
The report said then-KMP Project Director Zamir Abbasi and Director Jhaman Das issued cheques and payments to contractors, while “all established checks and balances” were bypassed, including those involving the PAO, consultants, PMC and SMTA.
A table in the report showed advance payments of Rs885 million for Depot-I, Rs2 billion for Depot-II and Rs5.682 billion for Jam Sadiq Bridge, taking the total to Rs8.567 billion.
It said the advance payments were made in violation of rules and provided contractors with an undue benefit, while also putting the Yellow Line project and the bank agreement at risk.
The report noted that the awarded cost of the Jam Sadiq Bridge was Rs12.53 billion, Depot-I Rs2.64 billion and Depot-II Rs16.96 billion. It showed physical progress up to April 2026 at 55.17% for JSB, 10% for Depot-I and 35.62% for Depot-II.
“The management practices adopted by KMP represent a classic case of sham administration,” the report said, adding that the matter warranted proceedings under relevant E&D and Misconduct Rules.
The report also said the conduct reflected “unfitness for civil service” and rendered the official “undeserving of any position of trust or responsibility in the future”.
It recommended administrative and remedial measures by the Transport and Mass Transit Department to “rescue the project”.
The report also recommended a criminal investigation against the administration, after which the Anti-Corruption department registered an FIR.
