PESHAWAR: Officials of the Khyber Pakhtunkhwa sports and youth affairs department embezzled over Rs700 million funds from two projects aimed at developing and constructing of sports facilities across the province, an official inquiry has revealed.

Findings of the probe come to light at a time when provincial government is grappling with a Rs37 billion Kohistan corruption scandal.

On Nov 18, 2025, KP Chief Minister Sohail Afridi ordered the Provincial Inspection Team (PIT) to conduct an inquiry into the alleged irregularities and unauthorised expenditure at two projects, including “development of various playing facilities and repair of existing sports facilities in KP” and “construction of play grounds at union council level in KP”, at the request of adviser on sports Taj Mohammad Tarand.

According to the 121-page PIT inquiry report, a copy available with Dawn, Rs5.5 billion was allocated for the project development of various playing facilities (ADP no 180553) in KP in the PC-I, approved in 2019, which was later revised to Rs5.3 billion in 2024. Similarly, Rs2.9 billion was allocated to the other project for construction of playgrounds at union council level in KP (ADP no 210575).

Chief secy promises appropriate action on inquiry report

The report painted a damning picture of mismanagement, violation of protocols, negligence and misconduct in both projects that resulted into massive losses of public funds.

“It is evident that subject projects are marred by grave financial irregularities, deliberate violation of financial rules, illegal operation of bank accounts, falsification of official records, unauthorised withdrawals, embezzlement of public funds and gross misuse of authority by the responsible officials,” it noted.

Regarding the ADP No 180553, the report observed projected showed systemic financial mismanagement, unauthorised expenditure, poor recordkeeping and non-compliance with policy hindering development and facilitating corruption.

It said that an amount of Rs960.8 million was released for the revenue component of the project against revenue clearance of Rs183.1 million and Rs934.1 million spent so far. Similarly, for the capital component, Rs1.2 billion was released against required Rs1.9 billion.

During 2019-22, the expenditure amounting to Rs593.6 million was made and of this only Rs526.1 million was backed up with record, while the remaining amount of Rs67.7 million could not be verified due to the absence of record.

The report said that during 2022-25, Rs238.7 million was illegally withdrawn from the project funds including Rs50.8 million contractor’s security fees. “Out of Rs238.7 million, an amount of Rs231.1 million was transferred and withdrawn from illegal account being operated at the Bank of Khyber, Qayyum Stadium Branch,” the report said. It also said the same account was unlawfully used for additional credited amount of Rs348.4 million and subsequently withdrawn.

Regarding this illegal account, the report noted it was designated account for the project; however, in December 2021, government instructed to close down it and open an Assan Assignment Account and transfers the balance funds to it. But this account was not closed and later on the title of designated account was illegally changed through a fake letter of the finance department.

The project had a POL ceiling of Rs6 million whereas the expenditure under this head amounted to Rs28.1 million, exceeding the limit by Rs22.1 million through unauthorised and unjustified expenditure.

Similarly, Rs13.1 million was spent on repair of machinery and equipment against allocation of Rs5 million, resulting into excess allocation of Rs8.1 million under this head.

The average per annum salary expenditure of Rs11 million during 2019-23 shot up to Rs19.4 million and Rs16.3 million 2024 and 2024 respectively, despite the fact most of the posts remained vacant during this period. It said that the project had allocated Rs11.2 million for other contingencies over seven years period; however, Rs9.3 million or over 83 percent was disbursed during 2020-22.

Regarding the ADP no 210575, the PIT noted that Rs96.7 million was released for revenue component and Rs288.9 million capital part so far. It said that amount of Rs52.69 million had been illegally withdrawn from the project fund against unauthorised work.

Out of Rs52.6 million, Rs26.14 million was transferred to the illegal BoK Qayyum Stadium account and subsequently withdrawn. Expenses amounting to Rs21.5 million was incurred against the POL ceiling of Rs5 million, exceeding the limit by Rs16.5 million through unauthorised and unjustified expenditure.

Similarly, Rs4.1 million was spent on repair of machinery and equipment despite having no allocation for the purpose in the project documents. The project had allocation for the appointment of 30 interns under KP Internship Policy but contingent staff was hired without any recruitment process, resulting into unauthorised and illegal expenditure of Rs4.3 million.

In its recommendations, the report noted that the illegal retention and manipulation of designated account, diversion of project funds to an unauthorised account through a forged letter, excess expenditure beyond approved ceilings, unverified payments and unauthorised appointments clearly indicate premeditated financial misconduct and criminal breach of trust, rather than the procedural lapses.

“It is recommended that the recovery of misappropriated and embezzled amount may be made from the persons concerned and initiation of legal action under applicable laws under completing of codal formalities, in order to safeguard public funds and ensure accountability,” it said.

The report also recommended proceeding against the then project director, disbursement officer and co-signatory under the efficiency and disciplinary rules for dishonestly embezzling public funds, illegally operating and misusing a designated project bank account, illegally changing change of account title through forged letter and other irregularities.

Besides, it also recommended that in case of establishment of culpability, their future postings should categorically exclude positions involving financial powers, custody of public funds procurement and project implementation and their performance records be suitably annotated to ensure similar responsibilities are not entrusted to them again. The report recommended special audit of the both the projects be conducted immediately.

On Tuesday, the National Accountability Bureau asked the PIT to provide the bureau with an attested copy of the inquiry report, saying it’s verifying complaints of corruption in both projects.

Provincial chief secretary Shahab Ali Shah told Dawn that the report or any other inquiry report regarding irregularities and bungling of that magnitude would be taken “lightly”.

“This government under the chief minister is serious in clamping down on such cases. This probably will be one of the first cases of such nature where the government itself undertook to hold thorough investigation and let me assure you that all appropriate action is being taken against all those found involved,” he said.

Mr Shah said the government was also taking measures to plug “loopholes in the system”.

When contacted, adviser to the chief minister on sports and youth affairs Taj Mohammad Tarand said that the inquiry report had been submitted to the chief minister. He, however, said the report’s findings and recommendations had yet to reach him.

“We will act on the report in light of the chief minister’s directions,” he said.

Published in Dawn, February 5th, 2026