Key suspect in Rs40 billion Kohistan financial scam nabbed: report

The National Accountability Bureau (NAB) Khyber Pakhtunkhwa has arrested a former dumper driver implicated in a massive Rs40 billion financial scam. The suspect, allegedly involved in embezzling over Rs3 billion from the government treasury, was arrested in Abbottabad after NAB’s investigation, The News reported, citing sources. 

The accused operated under the guise of the owner and director of the fake M/s Mumtaz Khan Construction Company. He conducted fraudulent transactions through multiple bank accounts, with total transactions exceeding Rs16 billion. 

Following his arrest, the suspect was presented in an Accountability Court in Peshawar, where NAB was granted an eight-day physical remand for further interrogation and evidence recovery.

Initial investigations indicate that the accused, once an ordinary dumper driver, collaborated with other suspects to create a fake construction firm. The firm served as a front to siphon off funds from the Contractors’ Security Deposit Head of Account (G-10113), an account intended for ensuring the completion of government projects.

NAB officials revealed that the accused used multiple bank accounts to launder the embezzled money, with a turnover surpassing Rs16 billion. More than Rs3 billion was directly transferred through fraudulent treasury cheques. 

The suspect employed complex money-laundering techniques, including “layering,” to obscure the origin of the illicit funds. He is also accused of purchasing luxury properties, vehicles, and assets in his name, as well as in the names of relatives and benamidars (name-lenders) to conceal true ownership.

The investigation continues as NAB seeks to recover additional evidence and identify further co-conspirators involved in the scam.