Sindh orders probe into Rs20bn worker welfare schemes

Published March 4, 2026 Updated March 4, 2026 07:08am
According to the audit report, the Sindh government had allegedly committed over Rs9,242 million fraud, embezzlement and misappropriation during the said period. — AFP/File
According to the audit report, the Sindh government had allegedly committed over Rs9,242 million fraud, embezzlement and misappropriation during the said period. — AFP/File

KARACHI: The Sindh government has ordered thorough investigations into Rs20 billion projects initiated by the previous management of the Sindh Workers Welfare Board (SWWB), deeming them against workers’ and institutional interests, it emerged on Tuesday.

Sources said that the SWWB had taken certain controversial decisions and the new governing body of the Board decided to withdraw them.

They said that the schemes to be investigated included a Rs3 billion e-bike project for industrial workers, alleged misuse of Rs6bn funds meant for workers, construction and rehabilitation of labour colonies, flats and housing schemes, etc.

The SWWB has been plagued by several high-profile scandals, including a Rs5bn tender scam where officials allegedly manipulated procurement processes for development works.

New governing body of SWWB withdraws ‘controversial’ decisions taken by previous management; increases grant for heirs of workers died during service to Rs1m

The scam is said to have involved publishing tenders in “dummy” newspapers and hiding them from the Sindh Public Procurement Regulatory Authority (SPPRA) portal to limit competition and favour specific contractors.

In 2025, an aggrieved party took the matter before the Special Anti-Corruption Court, which had ordered a high-level probe.

The sources said that another issue was illegal allotments of hundreds of flats to favoured individuals and encroachment of flats meant for labourers.

They said that grave irregularities and alleged misappropriation of funds were also reported in the Rs3 billion programme launched in 2025 to distribute 10,000 free electric motorcycles (e-bikes) to industrial workers across the province.

Additionally, the sources said, the previous management was also involved in administrative irregularities, including purchasing an expensive office.

They said that massive embezzlement of funds and flaws in over Rs20bn controversial schemes were unearthed in a recent inquiry conducted by the labour department.

Against this backdrop, the new governing body of the SWWB, which met here on Tuesday, decided to withdraw the multi-billion-rupee projects and ordered a thorough and transparent investigation.

Chaired by Labour Minister Saeed Ghani, the meeting was attended among others by Labour Secretary Sajid Jamal Abro, SWWB Secretary Saeed Saleh Jamani, three workers’ representatives — Habibuddin Junaidi, Syed Rehmat Shah and Nasir Aziz Mansoor — and three nominees of employers — Humayun Nazeer, Muhammad Asif Memon and Masood Taqi.

According to a press statement, the minister termed the controversial projects contrary to the interests of both workers and the institution and declared that safeguarding workers’ rights remained his foremost priority.

However, the press statement remained silent about any of the controversial schemes which was withdrawn.

Workers’ grants increased

The board also decided to increase the financial assistance for workers, doubling the marriage grant for their daughters from Rs200,000 to Rs400,000.

In case of the death of a worker, his / her family will not get Rs1 million ‘death grant’ instead of previous Rs700,000.

The statement said that centralised committees had also been constituted to ensure transparency and effective oversight of all operations under the Board.

Senior labour leader and governing body member Habibuddin Junaidi expressed gratitude to PPP Chairman Bilawal Bhutto-Zardari and Chief Minister Syed Murad Ali Shah for once again entrusting the labour portfolio to Mr Ghani, the statement said, adding that he expressed confidence that under the minister’s leadership, welfare initiatives for workers would gain renewed momentum.

Speaking on the occasion, the minister Ghani stated that while the government would remain mindful of employers’ interests —acknowledging their role in providing livelihoods — it would not tolerate any measure, past or present, that undermines workers’ rights.

“There will be no compromise whatsoever on the protection and welfare of workers,” he declared unequivocally.

Published in Dawn, March 4th, 2026

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