💰 Rs. 106 Million Fraud Exposed in KP’s World Bank Project

Rs. 106 Million Fraud Exposed in KP’s World Bank Project

A major financial scandal has come to light in Khyber Pakhtunkhwa (KP). More than Rs. 106 million was embezzled from a World Bank-funded project using fake cheques and forged documents.

How the Scam Happened

According to official documents, the money was withdrawn on July 3, 2025. At that time, all project accounts were supposed to be frozen by the finance department for the new fiscal year. Despite this, the funds were released.

The Project Management Unit (PMU) of the KP Human Capital Investment Project (KP-HCIP) revealed that:

Fake cheques and forged authority letters were used.

Reference numbers were fabricated.

The bank still cleared the cheques without verification.

Details of the Fake Cheques

The following cheques were processed through the Peshawar Cantt branch:

Cheque No. 1326903725: Rs. 48,760,245

Cheque No. 1326903733: Rs. 55,320,306

Cheque No. 1326903733 (duplicate): Rs. 1,964,028

The repeated cheque number and fake signatures raised even more suspicion.

PMU’s Response

Project Director Asif Shahzad confirmed that his team detected the fraud. He stated that:

No new cheque book was ever requested by the PMU.

The bank did not verify details with the PMU or Accountant General’s Office.

This shows clear negligence by bank officials.

The PMU has asked for the Federal Investigation Agency (FIA) to take over and recover the money. They also demanded strict action against the responsible bank staff.

Bank’s Reaction

A senior bank official confirmed that an inquiry has started. He said that while the cheques were cleared through a government bank, the actual withdrawal happened at a private bank. He also mentioned that involvement of project staff cannot be ruled out.

What’s Next?

The case is now under investigation. The FIA’s Banking Circle is expected to take action soon. Officials believe this scandal highlights serious gaps in verification and accountability in Pakistan’s banking system.