Islamabad: The National Responsibility Office (NAB) launched on Saturday a formal investigation into alleged financial irregularities in the Khyber Pakhtunkhwa cities improvement (KPCIP) multimillionaire cities project, after concerns about the violations of acquisitions and suspicious corruption.
In a notice, seen by Sunriseissued to the KPCIP project management unit, the Khyber Pakhtunkhwa (KP) chapter of the NAB ordered the officials to provide all the records related to the hiring of consultants, the prequalification of the contractors, the shipments of offers, the audit reports and the advertisements.
The office warned that hiding or informing Mal Facts could lead to criminal consequences under the Ordinance of National Responsibility, 1999.
The measure follows the accusations of the legislators in the assembly of massive irregularities of KP that amount to RS32 billion in the project, which is funded by the Asian Development Bank and the Asian Infrastructure Investment Bank.
Demands all records, warns officials to hide or inform bad facts
The KPCIP is designed to improve infrastructure and urban services in the cities of Peshawar, Abbottabad, Kohat, Mardan and Mingora.
According to complaints raised before the Public Accounts Committee, a joint company by Zahir Khan and Brothers and the Turkish firm TTş-Asat LLC received illegally awarded contracts.
The legislators alleged that the joint company, at the time of the tender, was not registered in the Federal Income Board, the KP Revenue Authority or the Pakistan Engineering Council.
Other accusations include that the company received undue financial favors and billions of disbursements despite the progress in the insignificant soil.
Complaints also cite false progress certifications, weak supervision and tax evasion by the
Foreign partner, who supposedly did not pay income, sales or retention of taxes, causing substantial losses to the State.
However, Kashif Jan, project director of Zahir Khan and Brothers, rejected the accusations while talking with Sunrise.
“We have been working transparently and assured the quality of work in all projects,” said Jan. “Zahir Khan and Brothers is a well reputed company and we never commit to quality.”
The investigation occurs when the provincial government of KP, led by the PTI, has faced persistent accusations of corruption, with seated ministers that have leveled accusations with each other and against Prime Minister Ali Amin Gandapur.
Posted in Dawn, August 31, 2025
