By Aslam Shah
KARACHI: A controversial outsourcing arrangement initiated by the Karachi Water & Sewerage Corporation for the deployment of sanitary workers across the city’s sewerage network has triggered serious questions over transparency, legality and financial governance, with experts calling for an immediate inquiry by provincial and federal oversight institutions.
Documents available with the reporter reveal that the arrangement, issued under a “Standard Operating Procedure” (SOP) by the office of the Executive Engineer, Technical Committee (MPP), pertains to the deployment of skilled and unskilled sanitary health workers in all 26 towns of Karachi through a private joint venture identified as M/s Unit Enterprises – Waste Busters-3P (J.V.).
The outsourcing exercise covers core sewerage maintenance operations and includes provisions relating to labor deployment, attendance verification, invoice certification, monthly payments, insurance, operational supervision and compensation liabilities.
However, the documents do not disclose critical details normally considered mandatory in public sector contracting, including tender advertisements, procurement method, bid evaluation reports, contract value, duration, performance guarantees, legal vetting, or approval from competent forums.
Legal and procurement experts who examined the papers described the omissions as “highly alarming”.
“This is not a routine administrative instruction. It is effectively a large-scale operational outsourcing arrangement involving public money and citywide municipal functions,” a former senior procurement official told the reporter on condition of anonymity.
“Yet there is no visible evidence in the documents showing compliance with public procurement requirements.”
The development has raised questions over whether the arrangement complies with rules framed by the Sindh Public Procurement Regulatory Authority, and whether mandatory competitive bidding procedures were followed before awarding the work.
Observers say the SOP appears to function as a de facto contract despite lacking several essential components ordinarily required in public sector agreements, including clearly defined scope, quantified deliverables, dispute resolution clauses, financial safeguards, and independent monitoring mechanisms.
Particular concern has also emerged over the apparent absence of any reference to approval by the KWSC Board of Directors, despite the arrangement involving all towns of Karachi and potentially carrying substantial recurring financial implications.
Senior governance experts believe such a citywide outsourcing model would ordinarily require approval from the Board of Directors, finance authorities, legal department and other competent forums.
“The key question is whether an executive engineer or technical committee possesses delegated authority to operationalize such a massive outsourcing exercise independently,” remarked a retired government auditor.
The SOP further empowers a technical committee to verify attendance, certify deployment, process invoices and monitor performance. However, the documents contain no mention of biometric attendance systems, third-party audits, digital verification or independent oversight mechanisms.
Transparency advocates warn that the absence of such safeguards may create room for ghost employees, inflated billing, arbitrary certifications and misuse of public funds.
The arrangement has also drawn criticism from labour rights observers. One clause states that no additional payment shall be made for deployment on holidays, while another places operational supervision directly under KWSC officials despite workers formally remaining under the contractor.
Experts say such provisions could potentially trigger future disputes relating to labour protections, overtime compensation and employment status.
Concerns have additionally been raised that outsourcing operational manpower on such a scale could indirectly circumvent regular recruitment procedures and merit-based appointments within the public utility.
The revelations have prompted calls for intervention by oversight bodies, including the National Accountability Bureau, the Anti-Corruption Establishment Sindh, audit authorities, and the provincial local government department.
Transparency campaigners have demanded immediate public disclosure of tender documents, bid evaluation reports, contract agreements, legal opinions, financial approvals, manpower deployment records, and minutes of meetings through which the arrangement was allegedly approved.
Despite repeated concerns being raised in administrative circles, no formal clarification has yet been issued by KWSC regarding the procurement process, financial implications or approval status of the arrangement.
The controversy comes at a time when Karachi’s sewerage and water management systems remain under intense public scrutiny amid recurring complaints over governance failures, operational inefficiencies and allegations of irregular contracting practices within the utility sector.
