KARACHI: The Karachi Constructors Association (KCA), a body of city contractors working with civic bodies and other government organisaitons, has levelled serious allegations of large-scale corruption against officials of the Engineering Department of the Karachi Metropolitan Corporation (KMC), claiming that “billions of rupees” in development funds have been misappropriated through fraudulent practices.

According to a KCA statement, senior engineering officials at the KMC have allegedly misled Mayor Murtaza Wahab while engaging in systematic financial irregularities.

The association claimed that development funds were being siphoned off through manipulation of tenders, procurement of substandard materials, and the award of contracts to favoured contractors without competitive bidding.

The statement further alleged that professional diploma-holder engineers (B-Tech) within the department were involved in executing poor-quality development works for personal financial gains.

The contractors working on KMC projects had reportedly expressed grave concern over what they described as excessive commission demands and blackmail by engineering officials.

It was claimed that nearly 50 per cent of the allocated budget for development schemes had been consumed by commissions and taxes, making it nearly impossible for contractors to deliver quality and timely projects with the remaining funds.

The association cited a recent road construction project on Rahim Bakhsh Soomro Road in Gulzar-i-Hijri, Scheme 33, District East, inaugurated by Mayor Murtaza Wahab.

“The project, reportedly costing over Rs100 million, was allegedly executed without a formal tender process or public advertisement, and was awarded directly to an unknown contractor,” it said.

The association claimed that this direct contracting violated procurement rules and had resulted in significant losses to the public exchequer.

Furthermore, the statement alleged that contracts for more than 50 development schemes worth “several crores of rupees” had been awarded through non-transparent means.

The Karachi Cons­tructors Association urged the chief minister of Sindh, the provincial minister for local government, the mayor of Karachi, the chief secretary of Sindh, and investigative agencies, including NAB and the FIA, to conduct a thorough inquiry and take legal action against those found involved in the alleged corruption.

KMC rejects allegations

On the other hand, the KMC categorically rejected the “baseless and unfounded allegations” levelled by the association through a letter that “neither carries any registration number nor mentions the association’s registration details”.

In a statement, the KMC said that all procurement, tendering, and administrative processes were carried out strictly in accordance with law and established process.

“It is surprising and contradictory that the association, while actively participating in the same processes, has chosen to level allegations against KMC,” said the statement.

“Such statements appear to be pressure tactics rather than being based on facts or evidence. The KMC remains committed to institutional transparency and urges all stakeholders to raise concerns through appropriate and lawful forums.”

Published in Dawn, January 29th, 2026