The National Accountability Bureau (NAB), in a preliminary inquiry into the Rs100 billion Khyber Pakhtunkhwa Cities Improvement Project (KPCIP), has found evidence of serious irregularities in payments, land compensation, bank records, taxes, and land transfers. According to NAB sources, a review of the record identified payments for which receipts are missing and, in some cases, banks did not retain details of the payment beneficiaries' bank accounts.

NAB has sought records from the Project Management Unit (PMU), the bank concerned, and the Ministry of Finance, Islamabad, regarding payments made to vendors, contractors, and tax authorities. According to NAB sources, a discrepancy amounting to millions of rupees has also been found between the cheque register and the SAP system record concerning payments made to the contractor.

NAB has sought records of payments made to the company from 2023 to 2025 from the office of the Accountant General and KPCIP PMU to determine the reasons for the discrepancy. During the preliminary inquiry, a matter regarding payments for land compensation in Swat, Abbottabad, and Kohat has also surfaced.

Although funds were withdrawn under the head of land compensation, some affected landowners were reportedly not paid. NAB has sought complete records of land compensation and payments from the relevant district administrations.

Similarly, bank statements of the relevant accounts have been sought to examine the profit earned on government funds from 2021 to 2026. NAB has also sought the records of accounts of the Abbottabad district administration to determine any possible financial loss relating to advance tax payable by land sellers or other beneficiaries.

The preliminary inquiry has also revealed that some land acquired for KPCIP has still not been transferred in the name of the government of Khyber Pakhtunkhwa or the relevant department. NAB has sought complete records of the acquired land, reasons for delay in its transfer, details of payment of stamp duty and local council tax, and details of amounts deposited into the government treasury.

NAB has also sought independent valuation reports prepared by the PMU to determine the value of the land based on rates prescribed by the Board of Revenue. On the other hand, the Project Director of KPCIP told this correspondent that all payments were made directly into the bank accounts of the beneficiaries and that complete supporting records and payment details had been provided to audit authorities.

The PD said all cheque payments were made from the revolving fund account through the office of the Accountant General. Regarding the objection concerning payments to the contractor, the PD explained that the AG Office records cheque payments in the SAP system, while the PMU also maintains records of payments made to the contractor through the revolving fund account, as well as payments made by the Asian Development Bank under the direct payment procedure.

The PD said that once payments made through both sources are consolidated, there should be no discrepancy in the total payments made to the contractor. Regarding land compensation, he said KPCIP released the required funds to the relevant deputy commissioners and district collectors for land acquisition under the Land Acquisition Act, 1894, as the determination and payment of compensation is the responsibility of the Collector under the law.

He further said that a large number of affected landowners have been compensated.