Rs16.94bn Irregularities in KP Mines Dept: Audit Exposes Massive Losses, NAB Probes Placer Gold Scam

PESHAWAR : The Mines and Minerals Development Department of Khyber Pakhtunkhwa has come under serious scrutiny after audit reports for 2022-23 revealed irregularities worth *Rs16.94 billion* in just one year, while the National Accountability Bureau (NAB) has separately launched a probe into illegal mining of placer gold.

According to official documents available with Minute Mirror, the Khyber Pakhtunkhwa government suffered a loss of *Rs8 billion* due to illegal mining. The department also failed to recover *Rs4.31 billion* from defaulting contractors.

The audit further pointed out a loss of *Rs3.08 billion* to the provincial exchequer due to illegal mining and non-recovery of dues, and another *Rs1.83 billion* loss due to continuation of illegal mining despite the presence of check posts and inspectors in various districts.

Other major irregularities include:

– *Rs810 million* loss due to non-recovery of dues from lease holders of coal, bauxite, limestone and soapstone mines.
– *Rs580 million* loss due to non-deposit of advance net profit during joint venture agreements.
– *Rs140 million* loss in Peshawar where departmental land rent was collected at only Rs200 per acre instead of the notified Rs10,000 per acre.
– *Rs530 million* loss due to non-recovery of mining dues for small dams in Kohat, Nowshera, Swabi, Haripur and other districts.
– *Rs250 million* loss due to failure to award regular mineral contracts in Peshawar, Kohat and D.I. Khan.
– *Rs63.6 million* loss due to non-recovery of royalty dues in Mardan.

Meanwhile, the National Accountability Bureau (KP) has taken cognizance of illegal mining of placer gold and initiated an inquiry against officers/officials of the Mines & Minerals Department and others.

In a letter No. 1/866/IW-II/1/NAB (KP)/325299/377 dated July 17, 2025, to the Director General Mines and Minerals, Peshawar, NAB under Section 19 of NAO, 1999 has sought certified record of the auctioning of *17 blocks of placer gold in 2024* across the Indus River and Kabul River.

NAB has demanded procedures and rules for auction and profit-sharing/JV formula, details of payment made to University of Peshawar for survey, certified copy of the survey report, approval of 17 blocks, notifications of committees with TORs, method for calculation of reserve price and copy of advertisement of unsuccessful auction held in 2021.

Sources said the NAB inquiry (MES#325299) is in progress and the department is in possession of evidence related to the commission of the offence.