Kohistan corruption scandal: five contractors, two bankers arrested

ISLAMABAD: At least five key contractors, two bankers, and two government officials have been arrested in connection with the Kohistan mega corruption scandal, sources in the National Accountability Bureau (NAB) confirmed.

The arrested contractors have been identified as Muhammad Ayub, Duraj Khan, Aamir Saeed, Muhammad Riaz, and Subedar Khan. One of them has reportedly requested for a plea bargain worth Rs3.5 billion.

In addition, Shafiq-ur-Rehman Qureshi (District Accounts Officer), Muhammad Riaz (former bank cashier and dummy contractor), Fazal Hussain (Auditor at AG Office Peshawar), and Tahir Tanveer (former bank manager) have also been taken into custody, the sources said.

Sources said more arrests are expected in the Rs40 billion Kohistan scandal. The detained officials are accused of releasing funds for fake development schemes in Upper Kohistan. Several officers of the KP Communication and Works Department allegedly received kickbacks.

The five contractors reportedly carried out transactions worth Rs5 billion through multiple fake companies.

A forensic audit is under way, examining billions of rupees across 73 bank accounts. A significant amount has already been recovered from contractor Ayub, sources said.

NAB has also frozen a total of 36 luxury vehicles and properties linked to the accused. So far, NAB KP has seized seven luxury vehicles in connection with the scandal, including a Toyota Land Cruiser, Kia Jeep, Toyota Fortuner, and Honda Civic.

Additionally, 29 properties allegedly owned by those involved—located in some of Islamabad’s most expensive areas—have been frozen. These include commercial plazas, residential houses, apartments, and markets.

The scandal surfaced during a meeting of the provincial assembly’s Public Accounts Committee (PAC) in May, which subsequently ordered the formation of a special committee to probe the matter.