PESHAWAR: The National Accountability Bureau (NAB) has arrested eight individuals in connection with a massive Rs40 billion corruption scandal involving fake development projects in Kohistan.
Among those detained are government officials, bank staff, and contractors accused of embezzling public funds through fraudulent cheques, fake firms, and benami accounts.
Those arrested include Shafiq ur Rehman Qureshi (District Account Officer), Muhammad Riaz (ex- bank cashier & Dummy Contractor), Fazal Hussain (Auditor, AG Office Peshawar), Tahir Tanveer (ex- bank manager), Doraj Khan (Contractor), Amir Said (Contractor), Subedar (Contractor), and Muhammad Ayub (Contractor). More arrests are likely as NAB widens the scope of its investigation.
Official documents alleged that Shafiq ur Rehman Qureshi, District Account Officer, played a central role in processing fraudulent treasury cheques under Budget Head G-10113 for fake development projects in Upper Kohistan. During the investigation, it was established that he approved and signed cheques worth over Rs33 billion, fully aware that no actual civil work was executed. He received Rs200,000 per cheque as kickbacks from Qaiser Iqbal, Head Clerk in the C&W Department.
Another accused, Muhammad Riaz, ex-bank cashier & Dummy Contractor, initially worked as a cashier at a bank’s Dasu Branch and later became a dummy contractor after resigning. He registered multiple fake construction firms to siphon off funds, including M/s Hilal Construction, Itemad Construction, Kohistan Hills Construction Co., and Riaz Associates. Collectively, these firms received over Rs11.15 billion. Riaz opened bank accounts in the names of relatives and friends and actively laundered proceeds of crime in collusion with other accused and C&W officials.
Similarly, Fazal Hussain, Auditor at the AG Office Peshawar, was part of the Accountant General’s verification committee for deposit works. Instead of reporting irregularities, he colluded with Qaiser Iqbal and accepted Rs10.54 million in hush money through cash and bank transfers.
Likewise, Tahir Tanveer, ex-bank manager of Dasu Branch, allegedly used his position to facilitate the fraudulent scheme. He opened a fake account in his brother’s name under the firm M/s Essa Engineering Co. Through this account, he routed more than Rs500 million from government cheques without any actual work. He attempted to mislead NAB during questioning and was subsequently arrested.
The accused Amir Said, proprietor of M/s Amir Said & Co., received more than Rs1 billion in his various bank accounts. He actively participated in the fraudulent scheme and laundered proceeds of crime in collusion with other accused persons and officials. Despite joining the inquiry, he remained evasive, non-cooperative, and withheld critical information, which led to his arrest.
Accused Doraj Khan, contractor and owner of M/s Holly Wood Construction Company, played a major role in laundering illicit funds. His firm received over Rs1.10 billion from fraudulent withdrawals. He later moved funds to his personal accounts and invested in properties, both in his own name and through benamidars. He ignored NAB summons, destroyed evidence, and diverted money into multiple accounts before being arrested.
The accused Subedar, being the sole proprietor of M/s Subedar & Sons, received more than Rs376 million, using his firm to facilitate illicit withdrawals and money laundering in collusion with other officials. He was summoned but remained evasive and non-cooperative during the inquiry. Finally, Muhammad Ayub, contractor, acted as a shell contractor using his company to receive millions under fake development projects. NAB has traced properties and accounts linked to him purchased using misappropriated government funds. He operated multiple bank accounts in different branches and managed accounts of other firms such as M/s Zardad & Brothers, M/s Pattan Associates, and M/s Abdul Aziz, through account operation mandates. Investigations revealed that he, in connivance with co-accused persons, received illegally issued treasury cheques fraudulently drawn on the public exchequer worth more than Rs3 billion (verified so far). He used these funds to purchase luxury properties and vehicles in his own name and through benamidars. He also attempted to destroy evidence and conceal crime proceeds.
