Mismanagement in Khyber Pakhtunkhwa, Loss of 52 Billion, Exposé of Fraud

A recent audit report has uncovered unprecedented levels of fraud, mismanagement, and irregularities in Khyber Pakhtunkhwa, severely affecting various projects and departments of the province.

The report revealed that the public treasury suffered a loss of 152 billion 10 crore rupees due to misclassification of development expenditures, with 84 billion 83 crore rupees flagged for review, fraudulent payments of 13 crore 29 lakh, suspicious and fraudulent payments of 51 crore 46 lakh, damage to the province’s development, and the notice of vehicle losses and misuse.

The report highlighted recoveries exceeding 42 billion rupees, with 7 crore more confirmed in recoveries between January and December 2023.

The findings suggest that fraudulent payments, excessive expenditures, and poor governance are hindering the province’s development and undermining public trust.

The report noted 12 cases of fund misuse, mismanagement, and improper classification of development expenses, amounting to 84 billion 83 crore rupees.

Two cases involved vehicle losses and misuse, exceeding 80 lakh rupees.

Ten cases reported fraudulent payments of 13 crore 29 lakh rupees, while 16 cases showed suspicious payments and expenditures totaling 51 crore 46 lakh rupees.

An official from the Khyber Pakhtunkhwa government told Jang that these audit objections pertain to the expenditures of the previous government, and authorities should defend them in the Public Accounts Committee.

A proposed procedure for addressing objections exists, failing which the contested amounts must be returned.

The audit results indicated a recovery of 42 billion 96 crore 73 lakh 96 thousand rupees, with a confirmed recovery of 7 crore 47 lakh 38 thousand 9 hundred rupees during January to December 2023.

This report is based on the audit of the Khyber Pakhtunkhwa government’s accounts for the fiscal year 2022-23 and some previous fiscal years.

The report highlights several significant issues, including a 20 crore 5 lakh 36 thousand rupee cost increase in one project, despite applying significant discounts.