Peshawar [Pakistan] December 5 (ANI): A high-level inquiry by the Khyber Pakhtunkhwa Elementary and Secondary Education Department has unearthed a massive Pakistani currency (PKR) 106.04 million fraud in a World Bank-funded education project, revealing shocking lapses, collusion, and institutional negligence within the provincial system, as reported by Dawn.

According to Dawn, the funds were part of a PKR 26 billion World Bank loan intended to enhance access to, and the quality and infrastructure of, education in Peshawar, Haripur, Nowshera, and Swabi districts under the Khyber Pakhtunkhwa Human Capital Investment Project (KP-HCIP).

Following the 2024 monsoon floods, the initiative had also been extended to several disaster-hit districts.

The fraud surfaced after the project director of the KP-HCIP's Project Management Unit (PMU) alerted the authorities about suspicious withdrawals.

The official claimed that the misappropriation was executed through a 'highly sophisticated scheme' and suspected the involvement of a former project accountant, who had been dismissed but failed to hand over sensitive project materials, including his official laptop. The ex-accountant has been named the prime suspect.

Investigations revealed that cheque books with serial numbers 17512276-2375 and 17511876-975 were fully utilised in December 2024, and their requisition slips and stubs went missing, only to be fraudulently procured as new cheque books in the project's name.

On May 16, 2025, an outsider posing as project staff, using a fake authority letter, collected four new cheque books without authorisation.

The report attributed the scam to gross internal control failures, possible staff collusion, and serious negligence at the PMU, compounded by weak oversight from the National Bank of Pakistan (NBP) and Faysal Bank. It further criticised the Accountant General's Office for verification lapses and highlighted flaws in Pakistan's taxpayer registry and KYC systems, as cited by Dawn.

The inquiry committee has recommended filing FIRs under anti-corruption and criminal laws, arresting the accused, placing their names on the Exit Control List (ECL), and conducting a third-party forensic audit of the project's finances since inception. It also urged the State Bank of Pakistan to investigate the role of NBP and Faysal Bank, holding them accountable for enabling one of the most alarming education fund scams in Pakistan's recent history, as reported by Dawn. (ANI)