PAC to probe Rs40bn KP embezzlement

PESHAWAR: A massive financial scandal involving alleged embezzlement of Rs40 billion in Khyber Pakhtunkhwa has sent shockwaves across the province.

The provincial government, Public Accounts Committee (PAC) chairman and speaker of the KP Assembly have taken serious notice of what is being termed the largest financial scandal in the province’s history.

In response, PAC’s special meeting has been scheduled for Monday, May 5, 2025, at 11:00am, focusing on suspected irregularities in government bank accounts in the Upper Kohistan district.

A meeting was held in the Khyber Pakhtunkhwa Assembly, chaired by the Speaker and Chairman of the Public Accounts Committee, Babar Saleem Swati.

The meeting was attended by the Accountant General of Khyber Pakhtunkhwa, Chief Minister’s Adviser Sohail Afridi, MPAs Sajjadullah Khan, Mian Sharafat, Shafiullah Jan, and Asif Khan Mehsud, along with senior officers from the Provincial Assembly Secretariat. The session included a detailed review of media reports which revealed that in Upper Kohistan district, officials from the District Accounts Office, Communication and Works Department, staff of a major bank and others allegedly colluded with a fake construction company to carry out suspicious transactions exceeding Rs40 billion, including the issuance of thousands of fake cheques from government accounts.

In view of the seriousness of the matter, Speaker Babar Saleem Swati promptly took action by calling a special session of the Public Accounts Committee on Monday, May 5, 2025, at 11:00am. PAC Chairman Babar Saleem Swati declared that all those involved in the financial scam, corruption and embezzlement would be exposed. He announced the initiation of a formal inquiry into the alleged corruption in provincial Finance Department and Communication and Works (C&W) Department.

Swati expressed grave concern over the failure of relevant institutions to prevent fraud and questioned how public funds were transferred into private accounts. He stated that no one would be allowed to steal the people’s money, and that every rupee would be accounted for.

“This inquiry will serve as a milestone in restoring public trust, ensuring institutional accountability and promoting financial transparency,” he said.

The Director General of National Accountability Bureau has also been invited to brief the committee on this critical matter. The Secretary Finance, Secretary C&W, Auditor General KP, Director General Audit KP and Secretary Law and Parliamentary Affairs have also been summoned to explain the scandal, the system’s functioning and progress of the case.

Chief Minister of Khyber Pakhtunkhwa, Ali Amin Gandapur, has taken notice of the revelation of embezzlement and financial corruption involving over Rs40 billion from the province’s government bank accounts.

Reacting to the news of the alleged Rs40 billion corruption scandal, Khyber Pakhtunkhwa’s Information Adviser, Barrister Dr Saif, stated that in line with PTI Chairman Imran Khan’s vision, the KP government is following a zero-tolerance policy against corruption. CM Ali Amin Gandapur has taken a serious notice of the alleged scandal.

Barrister Dr Saif said the chief minister has directed immediate action by the Anti-Corruption Department and all relevant institutions to ensure a transparent investigation. He emphasized that this alleged scandal is in no way linked to the current government, as the issue occurred during the previous administration, and the withdrawal of funds from banks took place under the caretaker government.

The KP information adviser added that the current government has implemented strict laws to prevent corruption. Stern legal action will be taken against all those responsible, including officials from the department involved in the scandal. Those found guilty of corruption will be punished accordingly.