AGP uncovers Rs28bn irregularities in Peshawar BRT project

PESHAWAR: The Auditor General of Pakistan (AGP) has uncovered irregularities and unauthorised expenditures amounting to Rs28 billion in the Peshawar Bus Rapid Transit (BRT) project.

These financial discrepancies have been detailed in a special audit report for the fiscal year 2024–25.

According to the report, available with HUM News English, the BRT project failed to recover the full cost of ZU cards and electricity, while contracts worth billions of rupees were awarded without approval from the Executive Committee of the National Economic Council (ECNEC).

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The report also flagged the project’s failure to generate expected revenue from its commercial spaces and noted irregularities in the appointment of the former Chief Executive Officer (CEO) of the project.

“Due to incomplete recovery of ZU cards, the government suffered a loss of Rs118.683 million, while non-recovery of taxes and costs related to equipment procurement resulted in a loss of Rs485.819 million,” the report stated.

Additionally, it said Rs500 million were lost due to unnecessary electricity expenses under the Khyber Pakhtunkhwa Urban Mobility Authority (KPUMA).

The BRT project also suffered a loss of Rs3.766 billion due to the illegal award of a contract for its operation and maintenance.

“Awarding the ITS contract without ECNEC approval caused a financial loss of Rs11.325 billion, while illegal ownership transfer of BRT buses resulted in a loss of Rs6.268 billion,” the report added.

It further revealed that non-utilisation of three commercial sites — Hayatabad Depot, Dabgari Garden Depot, and Chamkani Depot — led to a loss of Rs10.96 billion.

The report also noted that delays in the provision of vehicles for the BRT caused further financial damage to the provincial exchequer.

The AGP has recommended that the Khyber Pakhtunkhwa government initiate an investigation into the appointment of the former BRT CEO and the recruitments made during his tenure.

It has also urged an inquiry into the unauthorised expenditures and other financial irregularities, recommending action against those found responsible.