Court grants limited remand as investigations into Rs40 billion fake development scheme deepen
PESHAWAR – In a major development in the Kohistan mega corruption scandal, an accountability court has handed over contractor Fazal Rahim to the National Accountability Bureau (NAB) on a seven-day physical remand. Rahim, considered a key figure in the scandal, was arrested on July 19 from the Kohistan region and presented before the court on Monday.
According to media reports, NAB had requested a 14-day remand to continue interrogations, but the court approved seven days instead. During the hearing, NAB’s prosecutor revealed that Rahim is allegedly involved in suspicious transactions worth Rs300 million and has accumulated illegal assets. His arrest is part of NAB’s broader investigation into a Rs40 billion corruption scam involving fake development projects in Upper Kohistan.
Widening Investigation Uncovers Complex Web of Corruption
The Kohistan scandal centers around massive embezzlement of public funds through fake firms, forged treasury cheques, and fraudulent development projects that were never executed. So far, ten individuals have been arrested, including government officials, contractors, bank staff, and auditors.
Among them is District Accounts Officer Shafiq ur Rehman Qureshi, who allegedly approved fake cheques and received kickbacks of Rs200,000 per cheque. Former bank cashier Muhammad Riaz, who posed as a contractor, registered several bogus firms and siphoned over Rs11 billion into accounts held under friends and relatives’ names.
Other suspects include:
- Fazal Hussain, auditor, who accepted over Rs10 million in bribes.
- Tahir Tanveer, ex-bank manager, linked to Rs500 million in fake transactions.
- Contractors Amir Said, Doraj Khan, Subedar, and Muhammad Ayub, each accused of withdrawing billions through fake accounts and laundering the funds into personal assets, real estate, and vehicles.
NAB reports that Rs33 billion was disbursed via fake treasury cheques, and efforts to destroy evidence and shield other culprits are ongoing. Authorities have issued notices to several government officers suspected of involvement, and more arrests are expected in the coming days.
