Rs40b scandal exposes gaps in govt depts

Officials fail to satisfy Public Accounts Committee

PESHAWAR:

The largest financial scandal in Khyber-Pakhtunkhwa's history — amounting to a staggering Rs40 billion—has left government departments reeling, as they failed to provide satisfactory answers before the Public Accounts Committee (PAC) of the K-P Assembly. Departments including Finance, Accountant General's Office, and Communication & Works (C&W) were unable to present complete documentation or convince committee members of their performance regarding embezzlement in Upper Kohistan.

During the high-level meeting chaired by Assembly Speaker Babar Saleem Swati, department representatives mostly shifted blame onto each other. The speaker criticized the departments for their poor coordination, emphasizing that this is not just a Rs40 billion scandal, but likely part of a broader corruption network potentially reaching Rs500-600 billion.

In contrast, the National Accountability Bureau (NAB) earned praise for recovering Rs20 billion from the misappropriated funds. Speaker Swati highlighted this as a rare case where no political figures are implicated, and said the scandal involves deep-rooted institutional corruption, especially within the AG Office, Finance Department, and C&W.

Despite the magnitude of the corruption, only two officials were suspended initially. The PAC ordered the suspension of additional officials across the involved departments. The AG's office was instructed to suspend two more officers within three days and initiate further action. Finance and C&W were also directed to identify and penalize more employees.

The AG claimed NAB had taken all records related to Upper Kohistan and had not returned them. However, NAB clarified that it only takes copies of documents, not originals. The Speaker reprimanded the AG for overstepping boundaries and insisted the office should have maintained copies.

The C&W Secretary revealed that an internal inquiry had led to the suspension of seven officials, but the PAC demanded all SDOs and XENs from 2019 to 2024 be suspended. The Speaker added that even check signatories must be held accountable. Contractors operating under fake companies are to be blacklisted, along with their beneficiaries.

DG Audit Sirajul Haq informed the committee that over Rs21 billion in irregularities were detected last year alone, and more discrepancies worth Rs6 billion were found in 18 districts. He stressed the need to audit a full decade's worth of records from Kohistan, promising a complete report by December.

A heated exchange also erupted between PPP MPA Ahmad Karim Kundi and Finance Advisor Muzzammil Aslam, with Kundi demanding Aslam's resignation. Aslam denied any involvement in the scandal, asserting his department's innocence. The session concluded with warnings that no department or officer would be spared accountability.

Speaker Swati summed up the sentiment: "This isn't just theft—it's systematic institutional failure."