By: Shahid Jan
A significant scandal has emerged within the Pakistan Tehreek-i-Insaf (PTI) government, revealing irregularities amounting to Rs 32 billion in the Cities Improvement Project (CIP). Assembly members have called for an investigation and actions against those involved, appealing to the Public Accounts Committee. Sources indicate that a contract to equip five cities in Khyber Pakhtunkhwa—Peshawar, Kohat, Mardan, Abbottabad, and Mingora—with modern facilities was awarded to an unregistered Turkish company under the Khyber Pakhtunkhwa Cities Improvement Project (KPCIP). This company was not registered with the Pakistan Engineering Council, the Federal Board of Revenue (FBR), or the Khyber Pakhtunkhwa Revenue Authority at the time of bidding.
Reports suggest that Rs 32 billion was disbursed based on fraudulent documentation with the complicity of staff and consultants. The company is also accused of tax evasion, as there is no record of it paying income tax, sales tax, or withholding tax. By engaging with an unregistered company and making payments based on false reports while neglecting tax obligations, the national treasury has suffered significant damage.
In response to these irregularities, provincial assembly members—including MPA Sajjadullah, Muhammad Riaz, independent member Taj Muhammad, Munir Hussain Laghmani, and PTI’s Muhammad Arif—have sent a letter to the Chairman of the Public Accounts Committee, demanding an investigation into the contract awarding process and the payments made based on fraudulent reports. The assembly members criticise the inclusion of an unregistered company in the bidding process for obtaining a major contract, resulting in undue financial benefits for the company.
They have also requested that relevant officials from the KPCIP, the local government department, and project consultants be summoned for questioning. Furthermore, the letter urges that the issue be referred to the National Accountability Bureau (NAB), the FBR, and other relevant institutions, with actions taken against all responsible officers who approved payments based on allegedly fraudulent or incomplete documents.
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The Chairman of the Public Accounts Committee, who is also the Speaker of the Khyber Pakhtunkhwa Assembly, has acknowledged the irregularities and scheduled a meeting of the Public Accounts Committee for Thursday. The meeting will include the Deputy Auditor General (North), the Provincial Secretary for Communications and Works, and the Provincial Secretary for Local Government and Rural Development, instructing them to prepare responses to the allegations.
Previously, an audit had revealed irregularities amounting to Rs 8.4853 billion in this project. The audit report highlighted issues such as fund misuse, unauthorised work, unapproved design changes, and intentional cost escalation. It noted that Rs 8.800 million was wasted on non-existent work at the site, a false claim of Rs 11.219 million was made for the installation of fibreglass in the parking area, and Rs 34.890 million was lost due to inaccurate measurements. The Khyber Pakhtunkhwa Cities Improvement Project, estimated at Rs 97 billion, was initiated in late 2022 and is scheduled for completion by the end of 2026.
