KP govt depts lock horns over Rs40bn graft issue

PESHAWAR: The provincial government departments have locked horns over a massive Rs40billion embazlement and corruption scandal, blaming each other as the Khyber Pakhtunkhwa Assembly’s Public Accounts Committee (PAC) ordered the suspension of officials from the Finance Department, the Communication and Works (C&W) Department, and the Accountant General’s Office and sought a report in three days.

The PAC warned that the scandal may run far deeper, potentially exceeding Rs200 billion if fully investigated, implicating senior bureaucrats and political touts. The secretary of the C&W Department confirmed the corruption, admitting that the funds were embezzled with the connivance of the Finance Department, the AG Office, and the C&W accounts section. Ahmad Kundi demanded the resignation of Finance Adviser Muzzammil Aslam over the scandal.

The embezzlement of Rs40billion was first reported by Jang and The News, which caused a stir in the province. A special meeting of the PAC was called by the Speaker of the KP Assembly. The PAC held an emergency meeting chaired by Speaker Babar Saleem Swati and attended by assembly members, Finance Adviser Muzzammil Aslam, the NAB Director, the Accountant General, the DG Audit, the Secretary Finance, the Secretary C&W, and officials from other relevant departments.

The meeting focused on the embezzlement from a government fund in Kohistan. Evidence was thoroughly reviewed, including institutional failures and criminal negligence. The Speaker expressed strong concerns, stating that the corruption might not be limited to Kohistan but could also involve other districts, especially tribal areas. He noted that NAB had already initiated an investigation and stressed the need for a full assembly-level probe.

Accountant General Nasruddin informed the meeting that in 2024, corruption was discovered in the account, which was then closed. From 2016 to date, Rs.181.53 billion were deposited in account number 10113, while Rs. 206 billion were withdrawn, showing a discrepancy of Rs.24billion. The Speaker questioned how Rs24billion could vanish if the account had no money and how such large-scale corruption could occur under the supervision of senior officials. He demanded to know what the accounts office had been doing for six years. The AG explained that District Accounts Officers supervise funds at the district level and that there have always been disputes between their office and the Finance Department.

The Speaker dismissed this explanation as unsatisfactory, accusing the AG of evasiveness. Secretary C&W Israr Khan admitted that the funds were withdrawn with collusion between his department’s accounts section, the AG Office, and the Finance Department. He said that the full story would come to light if the signatures on all cheques were examined. He asked why the Finance Department and AG Office were unaware of such large withdrawals. When asked directly whether the C&W Department, Finance, and AG Office had collaborated to siphon off the funds, the Secretary replied, “Yes, exactly.”

The Finance Secretary denied responsibility, arguing that the account did not fall under his jurisdiction. The Speaker rejected this claim, stating that the Finance Department could not be absolved of responsibility. He questioned who was responsible for auditing these accounts at the district level. The AG responded that District Accounts Officers, though officially under the Finance Department, were handled by the AG’s Office.

The Speaker pressed, asking what these departments had been doing for six years. MPA Ikram Ghazi remarked that corruption went unchecked for 72 months, asking what the AG Office had been doing during that time. The AG replied that responsibility rested with divisional-level XENs and divisional accounts officers. The Speaker criticised the AG for shirking responsibility, pointing out that NAB would conduct its investigation, but the rest of the departments had done nothing. He asked what these major institutions were for if they only waited for NAB to act.

MPA Arbab Usman questioned how such large-scale embezzlement could go unnoticed. MPA Sajjadullah questioned whether it was not the duty of the relevant departments to verify documents during fund disbursement. He held the AG Office, Auditor General, and Finance Department equally responsible. Finance Adviser Muzzammil Aslam told the committee that from 2019 to 2024, Rs4.16billion were allocated to the three districts of Kohistan under the C&W Department. Additionally, Rs. 594 billion were allocated to settled districts for development projects, with Rs125billion specifically for road sector development. Contractors’ security funds amounted to Rs. 8–10 billion. He offered to provide further details if needed.

However, MPA Ahmad Karim Kundi criticized Muzzammil Aslam for downplaying the scandal and demanded his resignation. The DG Audit admitted that Kohistan had not undergone a full audit, noting that auditing depended on circumstances. He said Rs. 21 billion in irregularities had already been reported in the past year, and their role typically began only after a situation had worsened.

The Speaker noted that account number 10113 was a joint account of four different works departments, which added to the complexity. The Finance Secretary reiterated that they were not responsible because they did not maintain the account. The Speaker, however, said it was now evident that both the AG Office and the Finance Department were complicit. He added that the situation extended beyond corruption, with all departments involved fighting for their share in the embezzlement. He said the public needed to know the extent of corruption in their institutions and how billions were looted in collusion with thieves.

Speaker Babar Saleem Swati emphasized that these departments hide their failures by tarnishing the reputation of politicians. He said even the Assembly’s Internal Accountability Committee had been scrutinised over the promotion of two officers.

Finally, the Speaker ordered the suspension of all relevant officers from the Finance Department, AG Office, and C&W’s Internal Audit. He demanded that internal investigations be completed and a report submitted within three days. He stressed that unless strict action is taken, the system will never be cleansed of corruption. “All these departments are complicit in this corruption. No one will be spared,” he declared.