LAHORE: Multan Anti-Corruption Establishment (ACE) on Tuesday arrested a Parks and Horticulture Authority (PHA) deputy director and a government contractor, for their alleged involvement in a mega financial scam.

Acting on the directives of Punjab ACE Director General Sohail Zafar Chattha, a team led by Multan Regional Director Basharat Nabi and Circle Officer Syed Ali Hassan Gilani conducted an operation on March 16, 2026, arresting the two suspects nominated in FIR No 5/19.

Officials say that further investigations are underway against the suspects -- Multan PHA deputy director Naveed Ahmed Bhutta and contractor Ameer Chughtai, -- while different aspects of the case are being examined. They say the arrests were made in the wake of an internal inquiry conducted by a Multan PHA committee, which had earlier suspended three officials -- marketing director Hafiz Usama, accountant Badar Munir and site inspector Pervaiz Iqbal -- over alleged corruption, misconduct, and financial irregularities committed by them between 2022 and 2024.

The inquiry, ordered by PHA Director General Kareem Bakhsh and conducted by a five-member committee, headed by Adnan Ahmad Bhatti, uncovered systemic failures that caused an estimated losses, totaling up to Rs172 million, over four years, the officials say, adding that the losses were primarily linked to publicity contracts, lease agreements and revenue mismanagement.

Three other employees were earlier suspended in connection with the scam

According to the findings of the inquiry, the suspects misappropriated millions of rupees in public funds. It found that around Rs20m from Water and Sanitation Agency (Wasa) and horticulture allocations were reportedly diverted to settle private contractors’ liabilities, while financial instruments worth Rs64m went missing. Another Rs68m were allegedly shifted across accounts to conceal deficits, the probe report discloses.

The report also highlighted serious irregularities, including forged official records, tampered dates, and suspected fake signatures of a former director general.

The officials were also accused of issuing fraudulent adjustment letters, diverting funds, and fabricating challans, including a suspicious transaction of Rs3.5m.

The committee recommended criminal proceedings under anti-corruption laws against the suspects, recovery of embezzled funds from them, and a forensic audit to investigate documents’ forgery. It also proposed structural reforms, such as digitisation of revenue systems, stricter financial controls and geo-tagged surveys of leased properties.

Following the inquiry, the case was referred to the Multan ACE for further action.

ACE Regional Director Basharat Nabi confirmed that investigations are ongoing, adding that statements of relevant officials have been recorded, though it would be premature to draw conclusions at this stage.

The PHA DG said that no one would be allowed to misuse authority and vowed a strict action against those found involved in corruption.

Published in Dawn, March 18th, 2026