Investigators in Khyber Pakhtunkhwa’s Kohistan district have recovered Rs1.59 billion in cash, gold, and foreign currency during raids on the residences of 12 suspects linked to a Rs40 billion financial scandal, one of Pakistan’s largest corruption cases.
As reported by The Express Tribune, Pakistan, the Public Accounts Committee (PAC), chaired by Speaker Babar Saleem Swati, is intensifying its probe into the scandal, which surfaced on April 30, 2025, uncovering systemic financial irregularities involving senior officials and contractors.
Raids across Hazara Division, including Abbottabad and Mansehra, targeted homes and offices of officials from the Communication and Works (C&W) Department, District Accounts Office, bank staff, and contractors. Authorities seized Rs1.5 billion in Pakistani currency, three kilograms of gold (valued at Rs80 million), and $50,000 (Rs1.39 million), totalling Rs1.59 billion, per Profit by Pakistan Today.
Raids on the residences of key suspects uncover cash, gold, and US dollars as authorities widen the investigation into one of Pakistan's largest financial scandals
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— Profit (@Profitpk) May 14, 2025
Additionally, 50 bank accounts worth Rs 10 billion were frozen earlier, with the National Accountability Bureau (NAB) securing records for further scrutiny.
The scandal involving Rs40 billion allegedly siphoned from Khyber Pakhtunkhwa’s treasury through an audit revealing Rs21.37 billion in unverified payments via fake cheque books. The PAC ordered a special audit by the Auditor General and suspensions of implicated officials, with 50 individuals questioned and 100 more under review.
The audit, conducted via the SAP financial system, flagged payments under Object Head G10113 for 2023–24, absent from official ledgers and cheque lists, indicating fabricated records, per Profit by Pakistan Today.
The C&W Department’s misuse of the Security and Deposit Works account, meant for development projects, facilitated the fraud, with negligence cited as a key factor.