The National Accountability Bureau (NAB) has arrested eight key suspects linked to the Rs40 billion Kohistan corruption scandal. Among those detained are officials and contractors allegedly involved in financial fraud, money laundering, and misappropriation of funds intended for development projects in Upper Kohistan, The News reported.Â
The arrested individuals include Shafiq ur Rehman Qureshi (District Account Officer), Muhammad Riaz (former bank cashier and dummy contractor), Fazal Hussain (auditor at the AG Office Peshawar), and several contractors such as Doraj Khan, Amir Said, Subedar, and Muhammad Ayub. Additional arrests are expected as NAB broadens its investigation into the scandal.
The investigation revealed that Shafiq ur Rehman Qureshi played a central role in processing fraudulent treasury cheques for fake development projects under Budget Head G-10113. He approved cheques worth over Rs33 billion while being fully aware that no actual work had been carried out. He allegedly received Rs200,000 per cheque as kickbacks from Qaiser Iqbal, a head clerk at the C&W Department.
Muhammad Riaz, a former bank cashier who later became a dummy contractor, registered multiple fake construction firms and laundered over Rs11.15 billion through accounts in the names of his relatives and friends. He opened accounts under firms like M/s Hilal Construction and Riaz Associates to divert government funds.
Fazal Hussain, an auditor at the AG Office Peshawar, colluded with other suspects and accepted Rs10.54 million in hush money instead of reporting irregularities in the deposit works he was responsible for verifying.
Tahir Tanveer, a former bank manager at Dasu Branch, used his position to facilitate fraudulent withdrawals through a fake account in his brother’s name, routing over Rs500 million without any actual work. Despite initially attempting to mislead NAB, he was arrested.
Contractors Amir Said and Doraj Khan also played significant roles in the scheme. Amir Said’s firm received over Rs1 billion and participated in laundering the proceeds. Doraj Khan’s firm received over Rs1.10 billion, which he funneled into personal accounts and invested in properties, both in his name and through benamidars.
Subedar and Muhammad Ayub also facilitated illicit withdrawals and money laundering, with Ayub linked to over Rs3 billion in fraudulent transactions. Both were non-cooperative during investigations and attempted to conceal their involvement.
The NAB investigation continues, with more details expected to emerge as the authorities follow the money trail.
