KARACHI: A Chief Minister’s Inspection Team report has uncovered financial irregularities exceeding Rs8 billion in the Karachi Yellow Line Bus Rapid Transit (BRT) project, terming the matter a serious case of administrative and financial mismanagement.
The report, which examined the Karachi Mobility Project (KMP) for the Yellow Line corridor connecting Quaidabad’s Dawood Chowrangi to Numaish, stated that key administrative protocols related to contract management, tax deductions and fund disbursement were repeatedly violated.
According to findings, advance payments worth more than Rs8.56 billion were issued to contractors in breach of established procedures. The payments included Rs885 million for Depot-I, Rs2 billion for Depot-II and Rs5.682 billion for the Jam Sadiq Bridge component of the project.
The inquiry highlighted that former project officials allegedly bypassed multiple layers of oversight, including approvals from the Principal Accounting Officer (PAO), consultants, project management consultants (PMC) and the Sindh Mass Transit Authority (SMTA).
The report noted that these advance payments provided undue financial benefit to contractors while exposing the project to financial and operational risks. It warned that such actions could also jeopardise agreements with international development partners, including the World Bank, which is providing financial assistance for the project.
Despite significant expenditure, physical progress remains uneven. As of April 2026, construction progress stood at 55.17% for the Jam Sadiq Bridge, 10% for Depot-I and 35.62% for Depot-II, according to the report.
The document described the project’s management practices as a “classic case of sham administration” and recommended disciplinary proceedings under relevant Efficiency and Discipline (E&D) rules. It further stated that those involved appeared “unfit for civil service” and unworthy of holding positions of responsibility.
Following the report, authorities recommended criminal proceedings against the individuals concerned. Subsequently, the Anti-Corruption Department registered an FIR to investigate the alleged misuse of public funds.
Officials have also been urged to take urgent remedial steps to rescue the project and ensure compliance with financial and administrative regulations going forward.