ABBOTTABAD:
In an alleged financial fraud related to the Kohistan scandal, the Khyber-Pakhtunkhwa (KP) Finance Department has uncovered a fraudulent withdrawal of Rs 38.45 crore of government funds in Abbottabad. The department launched an immediate investigation and detained several suspects.
According to preliminary investigations, the fraud was orchestrated using three checks with forged signatures of Sub-Divisional Officer (SDO) and Executive Engineer (XEN) of Abbottabad Construction Division.
The checks were fraudulently processed at a local bank branch, bypassing mandatory financial safeguards.
Official sources revealed that the transaction completely bypassed the established government financial framework. The checks were processed without prior audit or mandatory clearance from the District Accounts Office in Abbottabad.
The amount was initially settled through the bank avoiding the required verification protocols. A portion of the embezzled amount was withdrawn before the Department of Finance could intervene.
Upon receiving a report of the suspicious transaction, the Department of Finance acted quickly and coordinated with banking authorities to freeze the accounts involved. The move secured nearly Rs 40 crore, avoiding a much bigger loss to the national exchequer.
In response to the breach, the Finance Department has taken administrative action, including the transfer of Sardar Aftab Ahmed, Abbottabad District Accounts Officer, who has been directed to immediately report to the Finance Department.
Qaisar Imad, the district accounts controller, has been put in charge of the office to ensure continuity of operations.
An additional charge of a divisional accounts officer has been assigned to safeguard relevant records and facilitate the ongoing investigation. A formal fact-finding investigation has been launched to determine liability and recommend disciplinary and legal action.
Furthermore, the finance department has directed all district accounts offices and administrative departments, particularly the Department of Communications and Works (C&W), to strictly adhere to financial controls, including mandatory pre-audit, treasury verification and enhanced internal supervision.
Amid the scandal, the C&W Department in Abbottabad took steps to counter what it described as “false and malicious propaganda” on social media regarding its financial transactions.
Officials confirmed that the checks circulating online, purportedly issued by the department, are fake and bear forged seals and signatures.
C&W officials said the department has been operating a modern digital payment system since December 31, 2025. They stated that all transactions are done online with proper approvals and complete digital records, and that no payments were processed during January 2026.
XEN Farman Khattak and SDO Ziauddin were credited for their timely interventions, which officials said protected the department from possible losses.
The finance department has formally notified all banks not to carry out any transaction bearing the signatures of the suspended official, Sardar Aftab Ahmed.
