Major Corruption Scandal Uncovered in Khyber Pakhtunkhwa: Over Rs. 40 Billion Embezzled from Government Accounts

Peshawar: A massive financial scandal involving the embezzlement of over Rs. 40 billion from government bank accounts in Khyber Pakhtunkhwa has come to light. Chief Minister Ali Amin Gandapur has taken serious notice of the revelations and ordered immediate investigations.
According to media reports, the funds were siphoned off through fraudulent checks and fake transactions from around 50 government bank accounts, which have now been frozen. The alleged corruption is said to have occurred during the tenure of the previous government and caretaker administration. The current government claims no involvement in the matter and has vowed a zero-tolerance policy towards corruption.
Khyber Pakhtunkhwa’s Information Adviser, Barrister Dr. Saif, confirmed the development, stating that the Chief Minister has directed anti-corruption and other relevant agencies to begin a transparent investigation. He emphasized that strong legal action will be taken against all those found guilty, including government officials and contractors.
One of the most shocking revelations from the initial investigation was the discovery of approximately Rs. 4.5 billion in the bank accounts of a dumper driver named Mumtaz, who had allegedly created a fictitious construction company. Overall, about Rs. 7 billion were deposited into his accounts through suspicious transactions.
Sources reveal that nearly 1,000 fake checks were issued from various district accounts, and 50 suspicious account holders have already been identified. Evidence suggests the involvement of influential political figures and senior government officials.
The scam primarily took place in the Upper Kohistan district, particularly through the Communication and Works (C&W) Department. Investigators found that development funds were fraudulently withdrawn using fake documents, inflated bills, and unauthorized payments. The government account “Security and Deposit Works 10113,” meant for contractor securities and development payments, was misused extensively.
The District Accounts Officer (DAO) reportedly violated General Financial Rules (GFR) and treasury regulations by approving unauthorized disbursements. Fake project bills were submitted with the connivance of contractors and officials, while actual work was never executed.
Employees of a government bank in Dassu, Upper Kohistan, were also found to have violated anti-money laundering laws by transferring public funds into private accounts. Audit and oversight bodies like the Accountant General’s Office and the Directorate General of Audit failed to detect the fraud in time, raising serious concerns over the effectiveness of the accountability system.
To preserve evidence, the investigation team has seized records from the C&W Department, the District Accounts Office, and related banks. In addition to the driver’s accounts, another Rs. 10 billion worth of funds have been frozen across various accounts.
Around 30 individuals have received legal notices for questioning. Investigators are also scrutinizing the roles of 14 bank officials, DAO staff, and personnel from audit and finance departments.
This extensive financial fraud has shocked even experienced NAB investigators, highlighting systemic weaknesses and potential deliberate breaches of financial regulations. As the probe continues, more explosive revelations are expected, with possible implications for high-ranking provincial officials.
Some contractors, however, have denied the allegations, claiming that they have operated legally and that the funds received were in exchange for valid government contracts.