PESHAWAR, Aug 4: On the request of Swiss Agency for Development and Cooperation (SDC), the National Accountability Bureau, NWFP, has begun probe into embezzlement of millions of rupees in the Small Scale Enterprise Promotion (SSEP) Project funded by the agency.

It is learnt that the SDC has also been looking into cases of sexual harassment of women employees of the project by the project director and a manager. An insider claimed that according to initial estimates of the SDC, funds to the tune of Rs300 million were misappropriated through different means.

Sources privy to the issue told Dawn that before stoppage of  the project after detection of the financial bungling, the project had become notorious as far as sexual harassment of the employees was concerned. Some women employees were selected from low-income groups and after their appointments they were forced to act in accordance with the wishes of the top officials, the source alleged.

A NAB official conceded that the bureau had received a request from  the Swiss agency and inquiry was going on to ascertain whether the case could be taken up. He said that after initial inquiry the case would be entrusted to an investigation officer following which the  officials concerned of the project would be arrested.

The SSEP was conceived in 1994 as a pilot project for small enterprise development towards income and employment generation and entrusted to Swiss Contact, a non-governmental organization, for implementation. From 1998 to 2001, it was fully operational and successful as a small enterprise promotion project.

However, the project was stopped due to indications of  financial misappropriation by the top management.

It is learnt that the Violence Against Women Forum, a network of NGOs and individuals, has strongly reacted against incidents of sexual harassment in the project and has asked the government and the SDC to inquire into the matter. The forum had heard about harassment of at least 17 workers and had sent a letter to the SDC in that regard, said a member of the forum. “The issue of financial plunder can be settled by arresting the official concerned and recovering money from him, but the issue of harassment is more serious as in our society women are rarely allowed to work in such offices,” she claimed.

In two letters sent to the partner organizations on July 16 and July 23, the acting resident representative of the SDC, Jean-Marc Clavel conceded unethical conduct in the project in terms of financial embezzlement and abuse of position in exploitation of staff.

The SDC promised in the letters that in case of harassment or exploitation, an ombudsperson system would be established.