ABBOTTABAD:
In an alleged financial fraud linked to the Kohistan scandal, the Khyber-Pakhtunkhwa (KP) finance department has revealed a fraudulent withdrawal of Rs 38.45 million from public funds in Abbottabad. The department has launched an immediate investigation and taken several suspects into custody.
According to preliminary investigations, the fraud was orchestrated with the help of three checks with forged signatures of the Sub Divisional Officer (SDO) and executive engineer (XEN) of Abbottabad Building Division.
The checks were fraudulently processed at a local bank branch without circumventing the mandatory financial safeguards.
Official sources revealed that the transaction completely circumvented the established state financial framework. The checks were processed without mandatory prior audit or approval from the District Accounts Office at Abbottabad.
The amount was initially cleared through the bank and avoided required verification protocols. Part of the embezzled amount was withdrawn before the finance department could intervene.
After receiving a report of the suspicious transaction, the finance department acted swiftly and coordinated with banking authorities to freeze the accounts involved. The drive secured nearly Rs 40 million, preventing a much larger loss to the national exchequer.
In response to the breach, the Finance Department has taken administrative action, including the transfer of Sardar Aftab Ahmed, District Accounts Officer Abbottabad, who has been asked to report to the Finance Department immediately.
Qaisar Imad, District Controller of Accounts, has been placed in charge of the office to ensure continuity of operations.
A Departmental Accounts Officer has been assigned an additional charge to secure relevant records and facilitate the ongoing investigation. A formal investigation into the facts has been launched to determine responsibility and recommend disciplinary and legal action.
Furthermore, the Finance Department has directed all District Accounts Offices and Administrative Departments, especially the Communications and Works (C&W) Department, to strictly adhere to financial controls, including mandatory pre-audit, financial verification and enhanced internal supervision.
Amid the scandal, C&W’s Abbottabad branch has moved to counter what it described as “false and malicious propaganda” on social media regarding its financial transactions.
Officials confirmed that checks circulating online purportedly issued by the department are fake and bear forged stamps 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 no payments were processed during January 2026.
XEN Farman Khattak and SDO Ziauddin were credited for their timely intervention, which officials said protected the department from potential casualties.
The finance department has formally notified all banks not to honor any transaction bearing the signatures of the suspended officer, Sardar Aftab Ahmed.
