PESHAWAR: A major financial scandal has come to light in Khyber Pakhtunkhwa, with allegations of around 32 billion rupees in irregularities in the Khyber Pakhtunkhwa Cities Improvement Project (KPCIP).
According to official documents obtained by a media outlet, a non-registered foreign company was allegedly awarded contracts illegally, with billions paid out based on fake progress reports.
The project is funded jointly by the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), and the Government of Khyber Pakhtunkhwa. Its aim is to improve urban infrastructure and municipal services in Peshawar, Abbottabad, Mardan, Kohat, and Mingora.
Documents reveal that a Turkish company, which was not registered with Pakistan’s Federal Board of Revenue (FBR), KP Revenue Authority (KPRA), or Pakistan Engineering Council at the time of bidding, was nonetheless awarded major contracts.
Despite minimal on-ground progress, around 32 billion rupees were disbursed, allegedly on the basis of false or exaggerated progress reports prepared with the collusion of officials and consultants.
The documents further allege that the foreign company evaded taxes, with no record of income tax, sales tax, or withholding tax payments, causing significant losses to the national exchequer.
Meanwhile, provincial assembly members Sajjadullah, Muhammad Riaz, Taj Muhammad (independent), Munir Hussain Laghmani and PTI’s Muhammad Arif have written to the Chairman Public Accounts Committee (PAC) and the Speaker of the Assembly demanding a formal inquiry.
They allege that the non-registered company was illegally included in the bidding process to award it lucrative contracts and deliver it unlawful financial benefits.
The lawmakers have called for summoning the KP Local Government Department, KPCIP officials, and project consultants to answer for the payments. They have also demanded that the matter be referred to NAB, FBR, and other agencies to hold all responsible officials accountable for approving payments based on forged or incomplete documentation.
Speaker of the Assembly and PAC Chairman Babar Saleem Swati has taken notice of the allegations and called a special PAC meeting on Thursday. Senior officials including the Deputy Auditor General (North), the Provincial Secretary for Communication and Works, and the Provincial Secretary for Local Government and Rural Development have been summoned to attend.
The PAC has instructed all relevant departments to prepare detailed responses to the allegations and present all related records.
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