ABBOTTABAD:
In an alleged financial fraud linked to the Kohistan scandal, the Khyber-Pakhtunkhwa (KP) finance department has discovered fraudulent withdrawal of Rs 38.45 million from government funds in Abbottabad. The department began an immediate investigation and took several suspects into custody.
According to preliminary investigations, the fraud was orchestrated using three checks bearing fake signatures of the sub-divisional officer (SDO) and executive engineer (XEN) of the Abbottabad building division.
The checks were fraudulently processed at a local bank branch, bypassing mandatory financial safeguards.
Official sources revealed that the transaction completely circumvented the financial framework established by the government. The checks were processed without prior audit or mandatory authorization from the Abbottabad district accounts office.
The amount was initially cleared by the bank avoiding the required verification protocols. Part of the embezzled sum was withdrawn before the Ministry of Finance could intervene.
Upon receiving a report of a suspicious transaction, the Ministry of Finance acted quickly and coordinated with banking authorities to freeze the affected accounts. The action made it possible to obtain nearly Rs40 million, thus avoiding a much greater loss for the National Treasury.
In response to this violation, the Ministry of Finance took administrative measures, including the transfer of Sardar Aftab Ahmed, District Accounts Officer, Abbottabad, who was instructed to report to the Ministry of Finance immediately.
Qaisar Imad, the district auditor, was put in charge of the office to ensure continuity of operations.
A Divisional Accounts Manager has been given additional responsibilities to secure relevant documents and facilitate the ongoing investigation. A formal fact-finding investigation has been launched to determine responsibility and recommend disciplinary and legal action.
Furthermore, the Finance Department has directed all district accounting offices and administrative departments, especially the Communications and Works (C&W) Department, to strictly adhere to financial controls, including mandatory due diligence, cash flow verification and enhanced internal monitoring.
Amid the scandal, Abbottabad’s C&W department took steps to counter what it called “false and malicious propaganda” on social media regarding its financial dealings.
Officials have confirmed that checks circulating online, purportedly issued by the ministry, are fake and bear fake stamps and signatures.
C&W officials said the department has operated a modern digital payment system since Dec. 31, 2025. They said all transactions were conducted online with proper approvals and complete digital records, and no payments had been processed as of January 2026.
XEN Farman Khattak and SDO Ziauddin were credited for their timely interventions, which officials said protected the department from potential losses.
The finance department has formally notified all banks not to honor any transaction bearing the signature of the suspended official, Sardar Aftab Ahmed.
