The Auditor General of Pakistan has flagged serious financial and administrative irregularities at the Sindh Building Control Authority (SBCA), according to an audit report covering the 2024-25 financial year. The report points to weak regulatory oversight, poor financial management, inadequate internal controls and lax enforcement of building rules.
The audit said the authority did not maintain proper financial records, did not ensure that construction approvals met mandatory requirements, and did not effectively monitor building activity across the province. The report also expressed concern that SBCA’s annual financial statements had not been prepared or finalised.
Slower approvals and permits issued without key clearances
The audit found weaknesses in the Single Window Facility used to process building plan approvals, which had slowed considerably. According to the report, the time needed to approve building plans had grown more than fourfold compared with 2019.
Several high-rise projects received construction permits without mandatory No Objection Certificates for selling and advertising residential and commercial units. The auditors warned that this could lead to legal complications and fraudulent sales to the public.
The report further revealed that plans and permits were approved for builders and developers who were neither licensed by SBCA nor members of the Association of Builders and Developers (ABAD). It described this as a breach of prescribed rules and recommended disciplinary action against officials responsible for approving such projects.
Consultancy spending and mortgaged plots under scrutiny
The audit flagged the hiring of private legal advisers without the mandatory approval of the Sindh Law Department. According to the report, Rs37.4 million was spent on legal consultancy fees, while another Rs52.2 million was paid to a consultancy firm for information technology services.
The auditors questioned the transparency of the engagement and payment of that consultancy firm, and whether prescribed procedures had been followed. The report also highlighted mortgaged plots that builders had pledged to SBCA as security.
According to the audit, certain developers allegedly offered these mortgaged plots to the public for booking, instead of holding them as security until their projects were completed and occupancy certificates issued. The audit described this practice as a violation of prescribed rules and regulations.
Shortcomings were also identified in the demolition of unauthorised and dangerous buildings, including failures to obtain mandatory technical and regulatory reports. The audit additionally questioned the hiring of demolition contractors who lacked specialised machinery and technical expertise.
Missing records prompt calls for investigation
The Auditor General expressed serious concern that SBCA failed to provide essential records needed for audit scrutiny. The report said the authority could not produce important financial and building-control documents, raising questions about its transparency and accountability.
The audit recommended an investigation into the alleged disappearance or non-production of these records, the identification of responsible officials, and appropriate departmental action. It also called for fixing responsibility for the administrative and financial irregularities uncovered during the audit.
The report concluded that weaknesses in enforcement, monitoring, record-keeping and internal controls had undermined the authority’s regulatory and administrative performance.
