KARACHI: A government inquiry has uncovered Rs8 billion irregularities in Karachi’s Bus Rapid Transit (BRT) Yellow Line project, raising serious concerns about financial management and oversight.
The findings came in a report prepared by the Chief Minister’s Inspection Team, which described the project’s administration as a case of severe mismanagement. The report stated that key procedures related to contract management, tax deductions, government payments, and project execution were repeatedly ignored.
The inquiry examined the Karachi Mobility Project (KMP), which is developing the Yellow Line BRT corridor between Dawood Chowrangi in Quaidabad and Numaish with financial support from the World Bank.
The project includes the construction of the Jam Sadiq Bridge, Depot-I at Dawood Chowrangi, and Depot-II near Indus Hospital.
According to the report, former KMP Project Director Zamir Abbasi and Director Jhaman Das approved payments to contractors while bypassing established oversight mechanisms. Several departments and consultants responsible for monitoring project spending and implementation were allegedly excluded from the process.
Investigators found advance payments totaling Rs8.567 billion. These included Rs885 million for Depot-I, Rs2 billion for Depot-II, and Rs5.682 billion for the Jam Sadiq Bridge.
The report said these payments violated official rules, gave contractors an unfair financial advantage, and exposed the project to risks, including potential issues with the World Bank funding agreement.
Project records showed that the Jam Sadiq Bridge contract was awarded at Rs12.53 billion, Depot-I at Rs2.64 billion, and Depot-II at Rs16.96 billion. By April 2026, physical progress stood at 55.17 percent for the bridge, 10 percent for Depot-I, and 35.62 percent for Depot-II.
The inspection team described the management practices as a “classic case of sham administration” and recommended disciplinary action under relevant government service and misconduct rules.
The report also stated that the officials involved demonstrated conduct incompatible with public service responsibilities and should not be entrusted with future positions of authority.
To safeguard the project, the team recommended immediate administrative and corrective measures by the Transport and Mass Transit Department.
It also called for a criminal investigation into the matter. Following the recommendation, the Anti-Corruption Department registered an FIR and launched further proceedings.