ISLAMABAD: The Khyber Pakhtunkhwa government, led by PTI, faces another major controversy as the chairman of the provincial Public Accounts Committee (PAC) has taken notice of alleged irregularities amounting to Rs32 billion in the KP Cities Impro­vement Project (KPCIP).

The KPCIP, funded jointly by the Asian De­­velopment Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), and the KP government, is aimed at improving urban infrastructure and municipal services in key cities, including Peshawar, Abbottabad, Kohat, Mardan and Mingora.

Concerns regarding serious procurement violations, non-compliance with engineering and tax laws, and suspected corruption were formally brought to the PAC chairman by some members of the provincial assembly, including Sajjad Ullah of JUI-F, Taj Muhammad, Muhammad Riaz and Munir Hussain Lughmani (independents), and Muhammad Arif of the ruling PTI.

According to a formal complaint, a copy of which is available with Dawn, the joint venture awarded multiple contracts under the KPCIP — comprising Zahir Khan and Brothers and Turkish firm T.T. Sh-Insaat LLC — was allegedly not registered with the FBR, KP Revenue Authority, or Pakistan Engineering Council at the time of bidding.

Payments allegedly made despite negligible on-ground work

The complaint alleges that not only was the awarding of contracts unlawful, but undue financial favour was extended to the firm, resulting in the disbursement of Rs32bn, despite minimal on-ground physical progress.

The complainants suggest that false progress certifications, weak oversight, and collusion among consultants and project staff may have enabled the payments.

Taking notice of the allegations, the PAC chairman and KP Speaker Babar Saleem Swati has convened a special meeting on July 17.

‘Replies to all allegations’

Kashif Jan, Project Director of Zahir Khan and Brothers, while speaking to Dawn said that he was aware of the allegations made by the MPAs.

“We have been preparing a detailed presentation, for the PAC, in which there will be replies and clarifications to all the allegations. It is not correct that Turkish firm T.T.Sh-Insaat LLC is not registered or contract has been awarded against the rules.

“Moreover, we have been working transparently and have ensured quality of work in all projects. Zahir Khan and Brothers is a well-reputed firm and we never compromise on quality,” he said.

Replying to a question, Mr Jan hoped that the PAC will reject the allegations as he has all the relevant documentation.

Published in Dawn, July 13th, 2025