Rs97bn KP cities project under NAB scrutiny over alleged Rs32bn irregularities

Summary PESHAWAR: The National Accountability Bureau (NAB) Khyber Pakhtunkhwa has initiated an inquiry into alleged financial irregularities in the Rs97 billion Khyber Pakhtunkhwa Cities Improvement Project (KP-CIP), with the anti-graft body examining transactions and payments reportedly amounting to around Rs32 billion. NAB said the inquiry concerns alleged financial irregularities and violations in projects awarded by the Project Management Unit (PMU) of KP-CIP under the Local Government, Elections and Rural Development Department. A NAB official associated with the inquiry, speaking on condition of anonymity, said the bureau began examining complaints in 2025 and that its preliminary scrutiny had raised questions about payments totalling around Rs32 billion. AI Generated Summary PESHAWAR: The National Accountability Bureau (NAB) Khyber Pakhtunkhwa has initiated an inquiry into alleged financial irregularities in the Rs97 billion Khyber Pakhtunkhwa Cities Improvement Project (KP-CIP), with the anti-graft body examining transactions and payments reportedly amounting to around Rs32 billion. According to NAB documents reviewed by Minute Mirror, representatives of three contractor firms have been summoned to the bureau's Hayatabad office on September 22, 2026. The contractors have been directed to appear before the inquiry team along with bank-account details relating to the project and other relevant records. The call-up notices were issued under Section 18 of the National Accountability Ordinance, 1999. NAB said the inquiry concerns alleged financial irregularities and violations in projects awarded by the Project Management Unit (PMU) of KP-CIP under the Local Government, Elections and Rural Development Department. The notices require the summoned representatives to appear at 1pm on September 22 and warn that failure to cooperate could lead to proceedings under the relevant provisions of the accountability law. The KP-CIP, estimated at Rs97 billion and supported by international development financing, covers major urban infrastructure schemes in Peshawar, Mardan, Mingora, Abbottabad and Kohat. The project focuses on areas including water supply, sewerage, solid-waste management and urban development. At the centre of the NAB inquiry are allegations concerning substantial advance and mobilisation payments despite limited physical progress on some schemes. Investigators are examining whether payments certified for completed or substantially progressed work correspond with the actual work visible at project sites. A NAB official associated with the inquiry, speaking on condition of anonymity, said the bureau began examining complaints in 2025 and that its preliminary scrutiny had raised questions about payments totalling around Rs32 billion. The official said investigators were comparing financial records with physical progress before determining the next course of action. The inquiry is also examining allegations of overbilling, discrepancies in underground infrastructure, the quality of construction materials, project variations and extensions, and the involvement of contractors and joint ventures in multiple project packages. However, these allegations have not been established, and the inquiry remains at the investigative stage. Any liability will ultimately depend on documentary evidence, forensic examination and the findings of the competent authorities. One of the contractors summoned by NAB told Minute Mirror that the company had received the notice and would appear before the inquiry team with the required record. The representative maintained that mobilisation advances had been made under contractual provisions and backed by bank guarantees, while delays in certain works were attributable to design changes and shifting of existing utilities rather than corruption. The project has also generated concerns among residents in areas where infrastructure works have remained incomplete. Residents have complained about excavated roads, drainage problems and disruption to commercial and daily activities. The controversy has placed the project's financial monitoring and verification mechanisms under scrutiny. The PMU, as the executing body, was responsible for overseeing project implementation and certifying payments, while the relevant government department exercised administrative oversight. The current Project Director was approached for comment, but his office said he was unavailable while the NAB inquiry was underway. The September 22 appearance of the contractors is expected to provide investigators with an opportunity to examine payment trails, bank transactions, contractual documents and evidence concerning the physical execution of the disputed works. NAB may subsequently question other officials and project personnel depending on the findings. At this stage, the alleged Rs32 billion irregularity figure represents the amount under scrutiny and should not be treated as a proven loss or misappropriation. The final determination will depend on NAB's investigation and any subsequent proceedings before the competent forum. The case has nevertheless placed a major urban-development project in KP under significant accountability scrutiny, with the outcome likely to depend on whether financial records can be reconciled with the work actually completed on the ground.