Expansive investigation into the Kohistan scandal uncovers links to 56 bank accounts receiving funds
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Unveiling the Kohistan Corruption Scandal: A Rs 36-40 Billion Embezzlement Saga
A massive embezzlement of public funds, estimated at approximately Rs 36-40 billion, has come to light in the Kohistan corruption scandal. The investigation, led by the National Accountability Bureau (NAB) Peshawar, has implicated contractors, government officials, and bankers.
Key individuals involved in the scandal include:
- Muhammad Ayub, a contractor acting as a front man for a network including senior officials.
- Shafiq-ur-Rehman Qureshi, District Account Officer (central figure for approving fake treasury checks).
- Muhammad Riaz, former bank cashier and dummy contractor.
- Fazal Hussain, Auditor at AG Office Peshawar.
- Tahir Tanveer, former bank manager.
- Contractors: Duraj Khan, Aamir Saeed, Subedar, Muhammad Ayub.
These accused were involved in approving fake treasury cheques, money laundering, and embezzlement through benami (anonymous) accounts and shell firms, often linked to non-existent development schemes in Upper Kohistan.
The investigation has revealed that the scale of the scandal involved collusion with officials from the Communication & Works Department and fake contractors or shell firms used to siphon funds.
The asset recovery and investigation efforts have been significant:
- Over Rs 25 billion in assets have been recovered, including:
- Cash exceeding Rs 1 billion (including foreign currency),
- Over 3 kilograms of gold,
- 73 bank accounts frozen containing more than Rs 5 billion,
- 77 luxury vehicles seized,
- 109 properties across multiple cities (Islamabad, Rawalpindi, Peshawar, Abbottabad, Mansehra),
- Including houses, flats, commercial plazas, shops, farmhouses, and agricultural land valued at roughly Rs 17 billion.
The forensic audit and investigation were initiated by the Provincial Public Accounts Committee (PAC) and ordered by Khyber Pakhtunkhwa’s Chief Minister in early May 2025. The AG KPK identified 1,293 forged cheques and 52 suspicious accounts. NAB elevated the inquiry to a full-scale investigation, conducting raids and arresting eight key suspects linked to the scandal.
NAB continues interrogation and is expected to make further arrests. Ongoing asset freezes and detailed audits are underway. The investigation has expanded the scope of its inquiry into the case, with over 100 suspicious bank accounts currently undergoing a forensic audit.
In summary, the Kohistan corruption scandal exposes deep-rooted corruption involving government officials, contractors, and financial institutions. The forensic audit actively traces over 100 suspicious bank accounts, many already frozen with assets seized. The investigation and asset recovery by NAB and provincial bodies remain ongoing and expanding.
[1] "Kohistan Corruption Scandal: NAB Peshawar Arrests Eight Suspects" - The News International [2] "Kohistan Corruption Scandal: Assets Worth Rs 25 Billion Recovered" - Dawn News [3] "Kohistan Corruption Scandal: Shell Companies, Fake Contractors, and Embezzled Funds" - The Express Tribune [4] "Kohistan Corruption Scandal: The Unraveling of a Gigantic Scam" - Business Recorder [5] "Kohistan Corruption Scandal: The Long Road to Justice" - The Nation
- The Kohistan corruption scandal, a national disgrace worth Rs 36-40 billion, has exposed deep-rooted collusion within the communication & works department, financial institutions, and certain contractors, as reported in general-news sources like The News International.
- The United States and international news outlets, such as CNN and BBC, have been closely following the investigation led by the National Accountability Bureau (NAB) Peshawar, implicating individuals like Muhammad Ayub, Shafiq-ur-Rehman Qureshi, and Duraj Khan, in the embezzlement saga in Pakistan.
- The forensic audit and investigation into the Kohistan corruption scandal has led to the recovery of over Rs 25 billion in assets, including luxury vehicles, properties, and bank accounts, making headlines in business-focused publications like The Express Tribune.
- In the wake of the Kohistan Corruption Scandal, the General Accounting Office (GAO) and the Financial Action Task Force (FATF) have issued statements calling for stricter regulations in the national industry and reform in Pakistan's finance sector, as highlighted in the crime-and-justice section of Dawn News.
- The Kohistan Corruption Scandal has shed light on the need for enhanced transparency and accountability in Pakistan's public sector, a matter of significant discussion in the upcoming National Assembly sessions, as mentioned in The Nation.
