KARACHI: A major inquiry has been launched within the Karachi Water and Sewerage Corporation (KWSC) over the controversial decision to issue individual billing to defaulting bulk consumers – including housing societies, builders and commercial entities – in violation of the 2016 water connection policy, Dawn has learnt.
According to sources, bill settlements worth billions of rupees were allegedly made through bribery and “commission deals”, where each bill reportedly involved kickbacks ranging between Rs10,000 and Rs20,000. Officials claim the practice resulted in severe revenue losses and manipulation of billing records.
The investigation was formally initiated through an office letter (Ref: KWSC/RRG/DMD/Estt/2025/335/L) dated October 16, 2025, issued under the signatures of Deputy Managing Director Imran Zaidi, on the directions of CEO Ahmed Ali Siddiqui.
A five-member assessment and evaluation committee, headed by Abdul Rauf Jamali, has been formed to examine the dispute between the Revenue Department and the MCC Committee. Other members include Elahi Bakhsh Bhutto, Rehmatullah Magsi, Wajahat Ali, and Rizwan Khan Ghori.
Sources revealed that over Rs40 billion in unpaid dues are linked to more than 10,000 bulk consumers across 26 towns – including federal, provincial and military institutions, as well as six industrial zones. Of these, Rs68.74 billion are owed by bulk consumers, while Rs54.49 billion are outstanding against over 1.35 million domestic users.
The inquiry seeks to determine under whose orders thousands of defaulting societies and builders were individually billed, bypassing established procedures. Official records show dues of:
Rs2.25 billion against 312 private societies
Rs779 million against 472 high-rise buildings
Rs3.69 billion against 1,213 cattle farms
Rs501 million against 235 farmhouses
Despite these massive liabilities, individual billing was allegedly carried out without first clearing outstanding payments.
Policy violations and internal rifts: The 2016 Water Connection Policy, issued under letter No. KWSB/DMD/HRD&A/1020 by then Managing Director Misbahuddin Farid, clearly prohibited changing a consumer’s bulk billing status to individual billing. However, revenue officials claim the 2023 Water Corporation Act has rendered that policy obsolete – a claim now under dispute.
The controversy deepened when bulk meter engineer Nadeem Kirmani, also serving as the self-styled president of the Water Corporation Officers Association, was accused of taking bribes for authorizing billing changes. Kirmani, said to be nearing retirement within 11 months, allegedly sold his official residence for Rs5 million and benefited from vehicle allotments.
An internal memo suggests bribery was the key factor driving the shift from bulk to individual billing. “Not a single bill was processed without payment of a commission,” one insider said, describing the scandal as a “revenue mafia” operating within KWSC.
The dispute reportedly intensified after bulk metering officer Tariq Laif wrote several letters questioning the legitimacy of the billing practice, which led to friction between the Revenue Department and Kirmani’s faction.
Sources added that former and current chief executives of the Water and Sewerage Corporation may have played roles in approving the billing changes, and their names are likely to surface as the probe progresses.
Meanwhile, the committee is expected to submit its findings soon, with insiders warning that the inquiry could expose a major financial scandal implicating senior officials, revenue officers and policy enforcers involved in the mismanagement of Karachi water and sewerage Corporation’s revenues.
