Another scam hits KP: Rs16.5bn withdrawn through dubious payments

PESHAWAR: After Rs40 billion Kohistan scam, another bombshell has emerged. A fresh report revealed that Accountant General Offices across Khyber Pakhtunkhwa (KP) made excess and suspicious payments of Rs16.54 billion from the same Public Works head — G10113 — between 2016 and April 2025.

The Controller General of Accounts (CGA) has ordered an immediate investigation into what is shaping up to be one of the largest financial embezzlements in the province’s history, with the total suspected amount touching Rs56.54 billion.

In the new scandal, excess funds were withdrawn through collusion of the Communication and Works (C&W), Public Health Engineering and Irrigation departments.

The CGA’s letter to the Accountant General, KP, states that according to a detailed system-based review of financial data, unusual and excess payments were found to have been made in KP. Under the Public Works head — G10113 — a total debit of Rs163.13 billion was recorded between 2016 and April 2025, while the total credit stood at Rs146.59 billion, resulting in a net excess payment of Rs16.54 billion across 29 districts. The CGA has given the KP Accountant General just 20 days to complete the inquiry and submit the report.

Sources told this correspondent that authorities have ordered for the formation of an investigative committee to determine how these excess payments occurred, identify responsible parties and recommend recovery measures.

The initial report uncovered glaring discrepancies across 29 district offices, with some showing hundreds of millions — and in several cases, billions — of rupees in unexplained excess payments. The worst offenders included AG Peshawar Rs3.05 billion excess, AG Swat Rs2 billion, Mardan Rs1.55 billion, Charsadda Rs1.17 billion, Nowshera Rs911 million, Swabi Rs385 million, Dera Ismail Khan Rs600 million, Dir Lower Rs672 million, and AG Bannu recorded overpayments of Rs518.44 million.

Similarly, AG Batagram Rs77.78 million, Buner Rs548.58 million, Chitral showed overpayments of Rs551.78 million, Dir Upper Rs464.36 million, and Haripur Rs402.45 million. AG Hangu faced overpayments of Rs479.82 million, Karak Rs280.50 million, and Khyber Rs315.23 million. Overpayments in AG Kohat amounted to Rs520.19 million, Kolai Pallas Kohistan Rs1.52 million and AG Kurram Rs19.64 million.

AG Lakki showed overpayments of Rs223.17 million, Malakand Rs498.53 million, Mansehra Rs731.82 million, Miramshah (North Waziristan) recorded Rs22.13 million, Mohmand Rs68.61 million, Shangla Rs346.19 million, Tank reported Rs706.42 million, and AG Torghar closed with overpayments totalling Rs545.81 million.

Sources in the Accountant General KP office said that unusual and excess payments were made, and the system revealed discrepancies amounting to billions of rupees. However, it will only become clear after the investigation how funds were withdrawn through overbilling despite lower deposits. They also confirmed that the Controller General of Accounts has ordered an inquiry.