NAB probes Rs30bn irregularities in KP cities project

PESHAWAR: The National Accountability Bureau’s Khyber Pakhtunkhwa office has opened an inquiry into alleged financial irregularities exceeding Rs30 billion in the Asian Development Bank-funded Khyber Pakhtunkhwa Cities Improvement Project, Minute Mirror reported on Wednesday. The project has an estimated cost of around Rs170 billion.

Minute Mirror said it obtained a copy of NAB KP Call-Up Notice No. 1/868/IW-II/NAB(KP)/328179, dated September 15, 2026. The notice, issued by Assistant Director (Coord) Imran Habib Khan for Director IW-II, states that the bureau received credible information from reliable sources about alleged financial illegalities in the project and has taken cognizance under Section 18(b) of the National Accountability Ordinance, 1999.

The notice summons Muhammad Suleman Khan, director of ZKB-T.T SH-INSAAT (JV) and ZKB-EREN-INSAAT (JV), through Muhammad Iqbal, focal person and chief planning officer of the Local Government, Elections and Rural Development Department. He was directed to appear before CIT-II, IW-II at NAB KP Block-III, PDA Complex, Phase-V, Hayatabad, Peshawar on September 22, 2026, and join the inquiry. He has also been asked to provide details of bank accounts used for the project and other relevant information.

NAB warned that failure to comply with the summons could be treated as deliberate obstruction or misleading of the inquiry and may attract action under Section 31 of the NAO, 1999, which carries imprisonment of up to ten years.

The Khyber Pakhtunkhwa Cities Improvement Project is a major urban infrastructure initiative funded by the Asian Development Bank, with a reported project value of more than $400 million. It aims to improve water supply, sewerage, drainage and solid waste management services in Peshawar, Mardan, Mingora, Abbottabad and Kohat.

Sources familiar with the matter told Minute Mirror that contracts involving Turkish joint ventures, including ZKB-EREN-INSAAT, were marred by alleged over-invoicing and procurement violations, causing an estimated financial impact of more than Rs30 billion. These allegations have not been established as facts by a competent court and remain subject to NAB’s ongoing investigation.

The bureau’s inquiry is expected to examine the procurement process, contractual arrangements, payments, bank transactions and other financial records associated with the project.