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PESHAWAR – A major financial scandal involving embezzlement of over Rs106 million has been reported from Khyber Pakhtunkhwa in a World Bank–supported development project. As per official records, the funds were withdrawn from KP Human Capital Investment Project (KP-HCIP) account on July 3, 2025, even though provincial finance department had frozen all project accounts between June […] The post World Bank–backed development project in KP hit by Rs106million Fraud appeared first on Daily Pakistan English News.

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PESHAWAR: Serious allegations of corruption and mismanagement have surfaced within the Khyber Pakhtunkhwa Human Capital Investment Project (KP-HCIP) — a Rs32 billion initiative funded by the World Bank and overseen by the province’s Elementary and Secondary Education Department. Following these allegations, the KP Elementary and Secondary Education secretary has assigned the task of conducting a thorough investigation into the project to the special secretary of development. The controversy began when the project’s accounts officer sent a letter to the education secretary, accusing the project director, deputy project director, and other officials of corruption, illegal advance payments, irregularities in the procurement process, forgery in contract documents, and violations of World Bank rules. The letter alleged that contractors received payments worth millions of rupees just days after signing their contracts. It said that companies failing to meet eligibility criteria were awarded tenders and that fake audit reports were prepared. It also alleged that official documents were falsified and records tampered with. Also read: KP government launches scholarship programme to encourage girls’ education However, the KP-HCIP administration has rejected these allegations, calling them baseless and stating that the project remains committed to improving education standards, transparency, and accountability. Project officials clarified that the accounts officer making these claims was working on a contractual basis, was not a permanent government employee, and was not part of the project’s core administration. They further said that complaints of the accounts officer’s involvement in illegal financial activities had been received from multiple sources, leading to his reassignment within the project. The accusations, they claimed, followed this reassignment and were part of a malicious campaign against the administration. The project’s management said that it strictly adheres to World Bank procurement and financial regulations and that regular audits are conducted to ensure compliance. They warned that action would be taken against those attempting to undermine the project’s reputation. Meanwhile, KP’s Secretary of Elementary and Secondary Education Masood Ahmed confirmed that a full investigation into the matter had been assigned to the special secretary of development and assured that no compromise would be made on the project’s credibility.

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