Rs40b Kohistan scam triggers major probe

PAC orders audit, suspensions as NAB seizes records in corruption inquiry

PESHAWAR:

The Khyber-Pakhtunkhwa government has launched an investigation into a mega corruption scandal in Kohistan district, where an estimated Rs40 billion has allegedly been siphoned off from the provincial treasury.

The scandal came under intense scrutiny during a meeting of the Public Accounts Committee (PAC), chaired by Speaker of the K-P Assembly, Babar Saleem Swati.

Officials from the Finance Department and the Accountant General's office admitted during the session that billions had been misappropriated from government funds.

While an official embezzlement figure of Rs24 billion has been confirmed so far, PAC members expressed dissatisfaction with the explanations provided by Secretary Finance and the Accountant General.

The Speaker subsequently ordered a special audit of the case by the Auditor General of Pakistan.

In his briefing to the committee, AG Naseeruddin stated that the AG's office is responsible for pre-audit functions, whereas post-audit responsibilities had been delegated to the Finance Department following earlier negotiations—despite the Constitution assigning that duty to the AG's office.

Speaker Swati pressed AG Naseeruddin how such large-scale embezzlement occurred under the department's watch.

The AG responded that the issue did not occur solely during his tenure and involved multiple officers over several years.

According to preliminary findings, between 2016 and 2024, Rs182 billion was deposited into a specific government account, while Rs205 billion was withdrawn—raising serious questions about oversight and accountability. The account in question was reportedly shut down six months ago when irregularities were discovered.

"The scale of this corruption cannot be pinned solely on district accounts officers or lower-level clerks," said Speaker Swati, emphasizing that responsibility must also be fixed at senior levels.

The Finance Secretary also failed to satisfy the committee with his responses regarding the scandal. In response, Speaker Swati ordered the immediate suspension of all officials involved, including those from the Finance Department, the Communication and Works Department (C&W), and the AG's Office. A formal inquiry has been launched.

This development has sent shockwaves through the provincial administration and raised serious concerns about financial oversight in government institutions.

Meanwhile, the National Accountability Bureau (NAB) has confiscated official records from several key government departments in relation to the Kohistan mega scandal.

The departments involved include the Finance Department of Khyber-Pakhtunkhwa, the District Accounts Office Kohistan, the Communication and Works (C&W) Department, and the Auditor General (AG) Office in Peshawar.

As part of its investigation, NAB has also approached relevant banks concerning individuals who withdrew large sums of money from various financial institutions.

In the briefing, NAB's Director of Investigations revealed that the inquiry into the Kohistan scandal is still in its early stages. The director confirmed that records from the involved departments have been secured, and any further developments in the investigation will be promptly communicated to the PAC.