Fresh mega corruption scandal of Rs6b surfaces in KP

PESHAWAR: After the Kohistan mega corruption scandal, the Auditor General’s Office has exposed a fresh set of financial irregularities amounting to Rs6 billion in contractors’ security deposit accounts across six districts of Khyber Pakhtunkhwa (KP).

This is the second mega corruption case surfaced in KP this year. Weeks ago, the provincial government came to learn that at least Rs36 billion were allegedly embezzled from a government account in Kohistan, one of KP’s most underdeveloped districts.

The KP had formed a high-level committee, headed by the chief minister, to investigate the Kohistan mega financial scandal.

The provincial assembly speaker had disclosed during a special session of the Public Accounts Committee (PAC) that National Accountability Bureau (NAB) had recovered Rs20 billion so far in the scandal.

Yesterday, sourced informed that NAB had also frozen a total of 36 luxury vehicles and properties of the accused in Kohistan corruption scandal.

About the fresh mega corruption case, documents available with Hum News English revealed that the Director General Audit KP conducted a special audit of the G-10113 security deposit account maintained by the Works Departments in 18 districts, excluding Kohistan.

The audit – conducted on the directives of the Auditor General of Pakistan – unearthed serious financial discrepancies and irregularities in payments and account management systems.

According to the audit report, irregularities were found in the following districts: Rs238 million in Bajaur, Rs80 million in Malakand, Rs582.4 million in Mardan, Rs591.55 million in Swabi, Rs320.49 million in Buner, and a staggering Rs4.34 billion in Swat.

The report observed a significant mismatch in financial data from these accounts, collectively pointing to Rs6 billion in irregularities. These discrepancies have raised concerns about the KP government’s financial oversight, transparency, and the record-keeping responsibilities of the Accountant General’s Office.

The special audit report has instructed the AG Office KPto immediately review the findings, ensure the correction of financial records, and take action against those found responsible for negligence.

According to officials from the Auditor General’s Office KP, the audit began in February 2024 and was completed in March 2025.

The final report has been submitted to the KP governor, provincial government, and speaker of the provincial assembly. Of the 18 districts audited, irregularities were found in six.