Khanewal beautification scandal: Alleged Rs650 million project corruption raises questions over VIP accountability

The Rs650 million Akbar Bazaar beautification project in Khanewal has become a major controversy for Punjab's administration,

LAHORE/KHANEWAL:  The Rs650 million Akbar Bazaar beautification project in Khanewal has become a major controversy for Punjab’s administration, following allegations of financial irregularities amounting to Rs240 million. The case has raised questions about accountability, the Anti-Corruption Establishment’s investigation and alleged preferential treatment for senior bureaucrats.

The controversy has intensified after former Deputy Commissioner Khanewal Maleeha Rashid reportedly submitted a written statement instead of appearing before investigators, while administrative officers’ associations and provincial government representatives have also entered the debate.

Alleged Financial Irregularities

The beautification project was launched under a Rs650 million development package aimed at improving Khanewal’s urban infrastructure and appearance.

However, documents obtained by Minute Mirror indicate that between Rs150 million and Rs240 million was allegedly released in advance to the contractor during Maleeha Rashid’s tenure, despite only Rs40 million to Rs50 million worth of work being completed at the site.

The contractor reportedly disappeared after receiving the payment, leaving the project incomplete for approximately eight months. Several shops remain damaged, while local traders continue to face financial losses. Engineer Zain Baloch and other relevant officials are also reportedly being investigated.

Former DC Submits Written Explanation

According to sources, Maleeha Rashid submitted her written response to the Anti-Corruption Establishment instead of appearing personally.

Her statement reportedly maintains that the advance payment was made with the approval of the Finance and Buildings Department and that she had no personal involvement or interest in the transaction.

Anti-Corruption officials have maintained that she has not been arrested and is currently part of the investigation. However, they have indicated that a written explanation alone is insufficient and that her personal appearance may still be required.

Meanwhile, current Deputy Commissioner Khanewal Hina Arshad stated that the contractor had deposited half of the received amount with Anti-Corruption Lahore.

Chief Minister Takes Notice

Punjab Chief Minister Maryam Nawaz Sharif reportedly directed authorities to arrest the contractor, recover the public money and include the former deputy commissioner in the investigation.

The directions were issued under the provincial government’s stated commitment to eliminating corruption and ensuring accountability.

Government Representatives Enter the Debate

Punjab Chief Minister’s spokesperson Syed Kausar Kazmi also attracted attention after stating that allegations must be supported by evidence and established through legal proceedings.

Federal Minister Chaudhry Salik Hussain subsequently responded to the controversy, suggesting that Senior Minister Maryam Aurangzeb should issue a legal notice to her own government’s spokesperson if she believed his statements were misleading.

Maryam Aurangzeb later stated on social media that the Director General Anti-Corruption was handling the matter according to law while ensuring the accused’s right to a fair defence. She reiterated the government’s zero-tolerance policy towards corruption.

Bureaucratic Associations Raise Concerns

The Pakistan Administrative Service Association (PASA) and the PMS Officers Association reportedly expressed reservations over the handling of the case.

In its communication to the Chief Secretary Punjab, PASA emphasised that an individual officer should not face a media trial and that advance-payment procedures involve multiple administrative authorities. It called for an impartial and transparent investigation.

Meanwhile, allegations of intervention by Chief Secretary Zahid Akhtar Zaman were dismissed by the Anti-Corruption Director General as rumours.

Questions Over Equal Accountability

The controversy has triggered criticism from lawyers, traders and civil society representatives, who question whether senior bureaucrats receive different treatment from ordinary government employees.

Akbar Bazaar traders have also demanded answers about the prolonged disruption of their businesses and the release of substantial public funds despite limited development work.

The case has now become a test of Punjab’s accountability system. Transparent investigations, recovery of public money and action against every responsible individual will determine whether the government’s promise of corruption-free governance is implemented equally.