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Updated 02 Feb, 2018 08:21am

NAB to probe alleged corruption in multi-billion-rupee Karachi Safe City Project

ISLAMABAD: The National Account­ability Bureau (NAB) has decided to conduct an inquiry into alleged irregularities and corruption in award of much-awaited multi-billion rupees contract of Karachi Safe City Project (KSCP) under which 100,000 closed-circuit television cameras were to be installed in the whole Sindh and 10,000 especially in Karachi to control unbridled street crimes.

The security project, which was initiated in 2016, is still in the doldrums due to controversies and alleged irregularities.

Irregularities were unearthed when the contract was reportedly awarded to a Chinese company ZTE in March 2017. However, NAB expressed the opinion that Karachi’s safe city project was not in safe hands and declared it illegal.

According to NAB, the project worth Rs10 billion begun with irregularities as terms and conditions of the contract were changed under the table in order to award the consultancy, services and feasibility to the favourite company and other companies running for the project were kept in complete dark.

“Karachi Safe City Project is one of the important projects and no hurdle in its way will be tolerated,” NAB Chairman retired Justice Javed Iqbal said in a directive given to NAB Karachi Region in which a report was also sought on the project.

He directed that KSCP should be completed on merit and in transparent manner and there should not be further delay because of NAB’s action. “It is the responsibility of the NAB to stop favouritism, misuse of powers and corruption and this responsibility will be fulfilled,” he added.

A NAB spokesman said the Sindh government had violated Sindh Public Procurement Regulatory Authority (SPPRA) rules in award of the contract which was confirmed by SPPRA itself. The authority also confirmed change of evaluation criteria of the contractors.

Interestingly, similar safe city projects have been executed in Islamabad and Lahore where CCTV cameras have been installed. Despite some of the segments of the projects are yet to be completed, they are working effectively in both cities.

According to a document available with Dawn, SPPRA in its reply to NAB letter on Dec 22, 2016 said: “A procuring agency may cancel the bidding process at any time prior to the acceptance of biding or proposal. Since in the instant case the bidding process has been finalized and contract stand awarded, the procuring agency can however terminate the contract as per terms and condition laid down in the contract agreement made with the firm.”

Interestingly, another bidder — China Petroleum Pipeline Engineering Cor­por­ation-Abu Dhabi — had filed a complaint with SPPRA in Jan 2016 regarding irregularities in hiring a consultant for feasibility study and transaction advisory service.

The NAB chairman said no hurdle would be tolerated in installation of CCTV cameras at different locations in Karachi under the safe city project, Karachi, but should follow all the legal course as well as it should be based on merit, transparent and under the rules and procedure.

According to Karachi NAB report, the Bureau has received the complaints of misuse of authority and violation of SPPRA rules in the safe city project, Karachi, and after the complaint verification process, the complaints were found correct.

After the complaint verification, NAB, through a letter on December 9, 2016, informed the SPPRA that the tender for the feasibility and advisory services of Safe City Project was awarded in violation of law and rules, so it should be cancelled and new tender be issued under the laws of Sindh Public Procurement Regulatory Authority, and NAB also be given the implementation report.

Published in Dawn, February 2nd, 2018

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