PESHAWAR: The Finance Department Khyber Pakhtunkhwa has ordered a formal inquiry into the fraudulent withdrawal of Rs38.45 million from government funds and directed the District accounts officer (DAO) Abbottabad to report immediately.
According to an official statement, a cheque bearing forged signatures of the Sub-divisional officer and executive engineer of the 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 management system, including mandatory pre-audit and clearance by the district accounts office.
The instrument was initially cleared through the National Bank of Pakistan Abbottabad branch, after which the amount was transferred to Faysal Bank. Officials said the transaction was carried out without adherence to required verification protocols and due diligence by the banking institutions concerned. Before preventive safeguards could be fully enforced, a portion of the amount was withdrawn.
The finance department clarified that the transaction was executed outside the established financial control framework and without any authorization or concurrence of the department. Mandatory procedures, including pre-audit checks, treasury verification and reconciliation processes, were bypassed.
Upon receiving information about the incident, the department coordinated with relevant banking authorities to block further transactions. As a result, an additional amount of approximately Rs40m was frozen, preventing further loss to the public exchequer.
In response, the officer concerned, Sardar Aftab an employee of the Office of the Accountant General currently serving as DAO Abbottabad on deputation has been directed to report to the finance department.
A divisional accounts officer has been given additional charge of the DAO office in Abbottabad to secure records and assist the inquiry team. A fact-finding probe has been launched to determine responsibility and recommend disciplinary and legal action under applicable rules.
The department has also issued strict instructions to all district accounts officers and administrative departments, particularly the Communication and Works Department, to ensure compliance with financial controls, including mandatory pre-audit, treasury verification and reconciliation mechanisms.
The provincial government reiterated its commitment to financial transparency and accountability, stating that any negligence identified during the inquiry would be dealt with in accordance with the law.
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