Massive scam surfaces in Abbottabad

The scheme allegedly bypassed mandatory audits and banking protocols

ABBOTTABAD:

In an alleged financial fraud linked to the Kohistan scandal, the Khyber-Pakhtunkhwa (K-P) Finance Department has uncovered a fraudulent withdrawal of Rs38.45 million from government funds in Abbottabad. The department has launched an immediate inquiry and taken custody of several suspects.

According to preliminary investigations, the fraud was orchestrated using three cheques bearing forged signatures of the sub-divisional officer (SDO) and executive engineer (XEN) of the Abbottabad Building Division.

The cheques were fraudulently processed at a local bank branch, bypassing mandatory financial safeguards.

Official sources revealed that the transaction completely circumvented the established government financial framework. The cheques were processed without mandatory pre-audit or clearance from the District Accounts Office in Abbottabad.

The amount was initially cleared through the bank avoiding required verification protocols. A portion of the embezzled amount was withdrawn before the Finance Department could intervene.

Upon receiving a report of the suspicious transaction, the Finance Department acted swiftly and coordinated with banking authorities to freeze the involved accounts. The action secured nearly Rs40 million, preventing a much larger loss to the national exchequer.

In response to the breach, the Finance Department has taken administrative action, including the transfer of Sardar Aftab Ahmed, District Accounts Officer Abbottabad, who has been directed to report to the Finance Department immediately.

Qaisar Imad, the district comptroller of accounts, has been placed in charge of the office to ensure continuity of operations.

A divisional accounts officer has been assigned additional charge to secure relevant records and facilitate the ongoing inquiry. A formal fact-finding inquiry has been launched to fix responsibility and recommend disciplinary and legal action.

Furthermore, the finance department has directed all district accounts offices and administrative departments, particularly the Communications and Works (C&W) Department, to strictly adhere to financial controls, including mandatory pre-audit, treasury verification and enhanced internal oversight.

Amid the scandal, the C&W Department in Abbottabad has moved to counter what it described as "false and malicious propaganda" on social media regarding its financial dealings.

Officials confirmed that cheques circulating online, allegedly issued by the department, are fake and bear forged stamps and signatures.

C&W officials said the department has been operating a modern digital payment system since Dec 31, 2025. They stated that all transactions are conducted online with proper approvals and complete digital records, and that no payments were processed during January 2026.

XEN Farman Khattak and SDO Ziauddin were credited for their timely interventions, which officials said protected the department from potential losses.

The finance department has formally notified all banks not to honour any transactions bearing the signatures of the suspended officer, Sardar Aftab Ahmed.