CDGK losing revenue through outsourcing CNG bus operations

November 23, 2009

By Irfan Aligi

KARACHI: City District Government Karachi (CDGK) Transport and Communication Department (T&CD) has yet to initiate e-ticketing system for the dedicated CNG bus Pilot project that was launched a few months ago.
According to sources in T&CD, e-ticketing facility was not yet introduced while the outsourcing all operations of CNG buses has not proved fruitful to CDGK due to loopholes in the system that failed to prevent leak of revenue.
The sources claimed that the CDGK 50 CNG buses being plied on two routes with 100 ticket booths. The employees of the contractor operate these booths in two shifts with salary of each employee Rs 6,000. This totals Rs 1,200,000 per month. There are 10 circuits on two routes with two supervisors on each circuit with a salary of Rs 12,000 each. This totals Rs 240,000.
The sources claimed that many passengers travel in these buses without tickets, which has caused loss of revenue to the CDGK. The CDGK has to pay the bills against these outsourced operations, which comes to hefty amounts. However, by hiring just 40 conductors to check for the tickets could save much of this money.
The sources said that there was no monitoring system for misuse of ticket facility because it was completely outsourced and the CDGK had no option except to trust the contractors and settle the bill they submit.Another well-placed officer in T&CD confirmed that there were reports of misuse of facility, which the CDGK was trying to control. The officer further said that the e-ticketing was already functioning but at a few locations in city and regular ticket-issuing machines were used.