NAB probes alleged Rs30bn irregularities in Rs170bn ADB-funded KP project

Minute Mirror has obtained a copy of the official NAB call-up notice, which confirms that the anti-graft watchdog has taken cognizance of allegations concerning financial illegalities

PESHAWAR: The National Accountability Bureau (NAB) Khyber Pakhtunkhwa has launched an inquiry into alleged financial irregularities exceeding Rs30 billion in the Asian Development Bank (ADB)-funded Khyber Pakhtunkhwa Cities Improvement Project (KPCIP), a mega development scheme with an estimated cost of around Rs170 billion.

Minute Mirror has obtained a copy of the official NAB call-up notice, which confirms that the anti-graft watchdog has taken cognizance of allegations concerning financial illegalities and violations allegedly involving officers and officials of the Project Management Unit (PMU) of KPCIP, the Local Government, Elections and Rural Development Department and other concerned persons.

According to NAB KP Call-Up Notice No. 1/868/IW-II/NAB(KP)/328179, dated September 15, 2026, the inquiry was initiated after the bureau 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, summons 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, Civil Secretariat, Peshawar.

The summoned official was directed to appear personally before CIT-II, IW-II at NAB KP Block-III, PDA Complex, Phase-V, Hayatabad, Peshawar, on September 22, 2026, and join the inquiry. He was also required to provide details of bank accounts being used for the project along with other information relevant to the matter under investigation.

The NAB notice warned that failure to comply with the summons could be treated as deliberate obstruction or misleading of the inquiry and may attract action under Section 31 of the National Accountability Ordinance (NAO), 1999, which carries imprisonment of up to ten years.

The Khyber Pakhtunkhwa Cities Improvement Project is a major urban infrastructure initiative funded by the Asian Development Bank, with a reported project value of more than $400 million, aimed at improving 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 marred by alleged over-invoicing and procurement violations, resulting in an estimated financial impact of more than Rs30 billion. These allegations, however, remain subject to NAB’s ongoing investigation and have not been established as facts by a competent court.

NAB has reportedly taken cognizance of the matter under Section 18(b) of the NAO, 1999. The bureau’s inquiry is expected to examine the procurement process, contractual arrangements, payments, bank transactions and other financial records associated with the project.

The official NAB call-up notice is in the possession of Minute Mirror.