NAB Nets Eight in Massive Kohistan Corruption Scandal

The National Accountability Bureau (NAB) has apprehended eight individuals concerning a significant corruption case involving approximately Rs40 billion in fraudulent development initiatives within Kohistan.

Those taken into custody comprise government employees, banking personnel, and contractors implicated in the misappropriation of state funds via illegitimate checks, fictitious enterprises, and undisclosed accounts.

The detainees are Shafiq ur Rehman Qureshi (District Account Officer), Muhammad Riaz (former bank cashier & Dummy Contractor), Fazal Hussain (Auditor, AG Office Peshawar), Tahir Tanveer (former bank manager), Doraj Khan (Contractor), Amir Said (Contractor), Subedar (Contractor), and Muhammad Ayub (Contractor). Further detentions are anticipated as NAB broadens its investigation.

Details of the Accusations

Official records indicate that Shafiq ur Rehman Qureshi, in his capacity as District Account Officer, allegedly played a pivotal role in handling deceitful treasury checks under Budget Head G-10113 for fabricated development ventures in Upper Kohistan. The inquiry revealed that he sanctioned and endorsed checks exceeding Rs33 billion, fully aware that no physical construction occurred. He purportedly accepted Rs200,000 per check as illicit payments from Qaiser Iqbal, Head Clerk in the C&W Department.

Muhammad Riaz, a former bank cashier who later became a dummy contractor, is accused of establishing multiple sham construction companies to divert funds. These include M/s Hilal Construction, Itemad Construction, Kohistan Hills Construction Co., and Riaz Associates, collectively receiving over Rs11.15 billion. Riaz allegedly opened bank accounts using the identities of relatives and associates and actively laundered illegal proceeds with other accused individuals and C&W officials.

Fazal Hussain, serving as an Auditor at the AG Office Peshawar, was a member of the Accountant General’s verification committee for deposit activities. Rather than reporting irregularities, he purportedly conspired with Qaiser Iqbal and accepted Rs10.54 million in bribes through monetary transactions and bank transfers.

Tahir Tanveer, the former bank manager of Dasu Branch, is alleged to have exploited his position to aid the fraudulent operation. He purportedly established a fraudulent account under his brother’s name using the firm M/s Essa Engineering Co. Through this account, he channeled over Rs500 million from governmental checks without any tangible work. He reportedly attempted to mislead NAB during questioning and was subsequently detained.

Amir Said, the owner of M/s Amir Said & Co., allegedly received over Rs1 billion across his various bank accounts. He purportedly engaged in the fraudulent scheme and laundered illicit proceeds in conjunction with other accused individuals and officers. Despite participating in the investigation, he allegedly remained evasive and uncooperative, withholding essential information, leading to his apprehension.

Contractor Doraj Khan, the owner of M/s Holly Wood Construction Company, allegedly played a key role in laundering illicit funds. His company purportedly received over Rs1.10 billion from fraudulent withdrawals. He then transferred funds to his personal accounts and invested in real estate, both directly and through proxies. He reportedly disregarded NAB summons, destroyed evidence, and transferred funds into numerous accounts before his arrest.

Subedar, as the sole proprietor of M/s Subedar & Sons, purportedly received over Rs376 million, utilizing his company to facilitate unlawful withdrawals and money laundering in cooperation with other officials. Despite being summoned, he was allegedly evasive and uncooperative during the inquiry.

Finally, Muhammad Ayub, a contractor, allegedly operated as a shell contractor, utilizing his company to receive millions under fictitious development projects. NAB has reportedly identified properties and accounts linked to him, acquired using misappropriated government funds. He managed multiple bank accounts across different branches and managed accounts for other firms, such as M/s Zardad & Brothers, M/s Pattan Associates, and M/s Abdul Aziz, through account operation mandates. Investigations purportedly revealed that he, in collaboration with co-conspirators, received unlawfully issued treasury checks fraudulently drawn on public funds worth over Rs3 billion. He used these funds to acquire luxury properties and vehicles in his own name and through proxies. He also allegedly attempted to destroy evidence and conceal illicit gains.