NAB KP has launched an inquiry into alleged financial irregularities exceeding Rs30 billion in the ADB-funded Khyber Pakhtunkhwa Cities Improvement Project.
PESHAWAR: The National Accountability Bureau (NAB) Khyber Pakhtunkhwa has launched an inquiry into alleged financial irregularities exceeding Rs30 billion in the Asian Development Bank-funded Khyber Pakhtunkhwa Cities Improvement Project (KPCIP), a major development scheme with an estimated cost of around Rs170 billion.
According to an official NAB call-up notice obtained by Minute Mirror, the bureau has taken cognizance of allegations involving financial illegalities and alleged violations by officers and officials of the Project Management Unit (PMU) of KPCIP, the Local Government, Elections and Rural Development Department and other concerned persons.
The notice, numbered 1/868/IW-II/NAB(KP)/328179 and dated Sept. 15, 2026, said the inquiry was initiated after NAB received what it described as credible information from reliable sources regarding alleged financial illegalities in the project.
The notice, issued by Assistant Director (Coord) Imran Habib Khan for Director IW-II, summoned Muhammad Suleman Khan, director of ZKB-T.T SH-INSAAT (JV) and ZKB-EREN-INSAAT (JV), through Muhammad Iqbal, focal person and chief planning officer of the LGE&RDD Department at the Civil Secretariat in Peshawar.
Muhammad Suleman Khan was directed to appear personally before CIT-II, IW-II at NAB KP Block-III, PDA Complex, Phase-V, Hayatabad, Peshawar, on Sept. 22, 2026, and join the inquiry. He was also asked to provide details of bank accounts being used for the project and other information relevant to the investigation.
The notice warned that failure to comply with the summons could be treated as deliberate obstruction or an attempt to mislead the inquiry and could attract action under Section 31 of the National Accountability Ordinance (NAO), 1999, which provides for imprisonment of up to 10 years.
The KPCIP is an urban infrastructure initiative funded by the Asian Development Bank, with a reported value of more than $400 million. The project aims to improve water supply, sewerage, drainage and solid waste management services in Peshawar, Mardan, Mingora, Abbottabad and Kohat.
Sources familiar with the matter have alleged that contracts involving Turkish joint ventures, including ZKB-EREN-INSAAT, were affected by alleged over-invoicing and procurement violations, with an estimated financial impact of more than Rs30 billion.
The allegations have not been established as facts by a competent court and remain subject to NAB’s ongoing inquiry.
NAB has reportedly taken cognizance of the matter under Section 18(b) of the NAO, 1999. The inquiry is expected to examine procurement procedures, contractual arrangements, payments, bank transactions and other financial records linked to the project.
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