The Finance Department, Government of Khyber Pakhtunkhwa, has taken immediate notice of a serious incident involving the fraudulent withdrawal of government funds amounting to Rs. 38,452,800 (Rupees Thirty-Eight Million Four Hundred Fifty-Two Thousand and Eight Hundred).
According to preliminary reports, a cheque bearing forged signatures of the Sub-Divisional Officer (SDO), Building Division, and the Executive Engineer (XEN), Building Division, Abbottabad, was presented at a branch of Faysal Bank in Abbottabad. The cheque was processed without being routed through the prescribed government financial control system, including mandatory pre-audit and clearance by the District Accounts Office, Abbottabad.
The instrument was initially cleared through the National Bank of Pakistan, Abbottabad Branch, following which the amount was transferred to Faysal Bank, Abbottabad Branch. The transaction was processed without adherence to requisite verification protocols and due diligence by the concerned banking institutions. Before full preventive safeguards could be enforced, a portion of the amount was withdrawn.
The Finance Department categorically clarifies that the fraudulent transaction was executed outside the established government financial management framework and without any authorization, approval, or concurrence of the Finance Department. Mandatory financial controls including pre-audit procedures, treasury verification mechanisms, and reconciliation processes were bypassed.
Upon receipt of the information, the Finance Department acted promptly and coordinated with relevant banking authorities and concerned offices to block further transactions. As a result of this swift and coordinated intervention, an amount of approximately further Rs. 40 million was successfully frozen, thereby preventing a substantial loss to the public exchequer.
In response to the incident, the following Administrative and Corrective Measures actions have been initiated. The officer concerned, Mr. Sardar Aftab, an employee of the Office of the Accountant General currently posted as District Accounts Officer, Abbottabad on deputation, has been directed to report to the Finance Department immediately.
A Divisional Accounts Officer has been assigned additional charge of the office of District Accounts Officer, Abbottabad, to secure all relevant records and provide full cooperation to the inquiry team until further orders. A formal fact-finding inquiry has been launched to comprehensively investigate the matter, determine responsibility, and recommend appropriate disciplinary and legal action in accordance with applicable laws and rules. Furthermore, strict instructions have been issued to all District Accounts Officers and Administrative Departments, particularly the Communication & Works (C&W) Department, to ensure strict compliance with established financial controls. Emphasis has been placed on mandatory pre-audit procedures, treasury verification protocols, reconciliation mechanisms, and strengthened internal controls to prevent recurrence of such incidents. All offices have been directed to ensure that no financial instrument is processed outside the prescribed government financial management framework. The Government of Khyber Pakhtunkhwa reiterates its unwavering commitment to financial transparency, institutional accountability, and the protection of public funds. Any negligence or lapse identified during the inquiry will be dealt with strictly in accordance with the law. Further updates will be shared as the investigation progresses.