The Khyber Pakhtunkhwa Assembly’s Public Accounts Committee (PAC) ordered the suspension of key officials from the Finance Department, the Communication and Works (C&W) Department, and the Accountant General’s Office (AG) over a massive corruption scandal involving embezzlement and mismanagement of Rs40 billion, The News reported.
The PAC has also called for a report to be submitted within three days.
The investigation began after reports surfaced of financial mismanagement and criminal negligence linked to the embezzlement of funds from a government account in Kohistan. Evidence presented during the PAC meeting revealed discrepancies amounting to Rs24 billion in the account.
The Speaker of the KP Assembly, Babar Saleem Swati, expressed concerns that this issue might extend far beyond Kohistan, potentially involving other regions, particularly tribal areas.
The scandal centers around an account used for government funds, where Rs181.53 billion was deposited from 2016 to 2024, but Rs206 billion was withdrawn, creating a Rs24 billion gap. The PAC questioned how such large sums could disappear without being detected by senior officials.
Despite explanations from the Accountant General and Finance Secretary, the committee was dissatisfied with the responses and raised concerns about the lack of oversight.
The Secretary of the C&W Department, Israr Khan, admitted that the funds were misappropriated with the collusion of the Finance Department, the AG Office, and his own department. The Speaker criticized the Finance Department for its failure to detect the massive withdrawals, urging that those responsible for auditing these accounts at the district level be held accountable.
The issue of missing funds came to light after corruption in Kohistan was discovered in 2024, leading to a thorough review of the account and the irregularities tied to it. The AG Office admitted that Kohistan had not undergone a full audit, despite irregularities of Rs21 billion being reported over the past year.
MPA Ahmad Karim Kundi, citing the scale of the corruption, demanded the resignation of Finance Adviser Muzzammil Aslam, who, according to the PAC, had downplayed the seriousness of the situation. The Speaker of the assembly also highlighted that the lack of accountability extended beyond corruption, as the involved departments fought for their share of the stolen funds.
According to the report, the Speaker has ordered the suspension of the relevant officers involved in the scandal and demanded that internal investigations be completed promptly. He stressed that unless strict action is taken, corruption would continue to plague the system. “No one will be spared,” he warned.
