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AGP Report Uncovers Multi-Billion Rupee Irregularities in K-4 Water Project
Billions lost in K-4 project! AGP audit reveals contracts awarded at inflated rates—up to double the estimated cost. Violations of procurement rules flagged.
ND
by News Desk
2025-07-16
AGP Report Uncovers Multi-Billion Rupee Irregularities in K-4 Water Project

A damning report by the Auditor General of Pakistan (AGP) has revealed irregularities worth billions of rupees in the K-4 water supply project, raising serious questions about transparency and governance in one of Karachi’s most critical infrastructure schemes.

The K-4 project, aimed at alleviating Karachi’s chronic water shortage, has now come under fire for alleged financial mismanagement, as detailed in the AGP’s 2022–23 audit report.

According to the report, two major contracts—collectively valued between Rs 5 to 7 billion—were awarded at prices significantly above official estimates. One contract was granted to a private company for Rs 15.39 billion, despite the engineer's estimated cost being Rs 10.24 billion.

In another instance, a separate contract was awarded at Rs 15.84 billion, while the estimated cost for the same was only Rs 8.94 billion—a difference of nearly Rs 7 billion.

The report asserts that both bids exceeded the engineer's cost estimates and lacked proper justification. It states that the contracts should have been rejected under PEPRA (Public Procurement Regulatory Authority) rules due to non-compliance with PC-1 approvals and unjustified cost hikes.

“These contracts were unfair, unjustified, and violated standard procurement practices,” the report stated, adding that the failure to reject the bids raises serious concerns of negligence or collusion.

The K-4 project has long been under public scrutiny for delays, cost overruns, and mismanagement. Originally launched in 2007, the project has faced multiple revisions and remains incomplete despite consuming billions of rupees from the public exchequer.

Transparency advocates and urban planners have repeatedly called for accountability in mega-infrastructure projects, particularly those involving public utilities in major cities like Karachi.

The AGP's findings are likely to intensify demands for a thorough investigation by anti-corruption agencies and greater parliamentary oversight of public sector development projects.

As Karachi continues to struggle with severe water shortages, revelations like these only deepen public frustration over governance failures and lack of accountability in addressing basic urban needs.
Tagged:

corruption

PublicFunds

K4Project

KarachiWaterCrisis

AuditReport
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