PESHAWAR: The National Accountability Bureau, Khyber Pakhtunkhwa chapter, on Monday arrested the chief executive officer of a firm for embezzling huge funds in a clean drinking water project, causing huge loss to the exchequer.

According to a statement issued here, the clean drinking water for all (CDWA) project was started across the country in April 2006 with the aim to install water filtration plants in union councils.

The bidding process, including pre-qualification and selection of contractors, was carried out by ministry of industries, production and special initiatives at the federal level. It was stated that gross violations of rules and regulations had been committed in award of contracts to various contractors rendering the project into a huge scam.

It was stated that contract of the water project was awarded to Abdul Moid Faruki, CEO M/s Ideal Hydrotech System, in Nov 2007 for installation of 1,159 water filtration plants. However, Mr Faruki, in connivance with officials of KP’s local government department, provided fake bank guarantee worth Rs594 million, on the basis of which, huge amounts were released by the department.

Due to provision of fake bank guarantee, the project was badly affected and the work was not executed as per the contract agreement which resulted in heavy loss to the exchequer and the people were deprived of availability of clean drinking water.

It was stated that NAB had already arrested accused Mohammad Ramzan Shiekh, CEO M/s Ideal Hydrotech System, and Asghar Khan (chief engineer local government) in the same case. Mr Faruki will be presented before the accountability court on Tuesday (today) for obtaining his physical remand.

Published in Dawn, November 13th, 2018