NAB achieves largest single-project recovery of Rs 168.5bln

The inquiry, initiated in 2018, focused on allegations surrounding the illegal awarding of contracts, misappropriation of government funds, and fraudulent performance guarantees associated with the BRT.

The accountability watchdog Khyber Pakhtunkhwa has since rejected a staggering Rs 31.5 billion claim from contractors in the International Court of Arbitration.

NAB's investigation uncovered that six civil works contracts for the BRT were improperly awarded. Among these, three pertained to road construction and three to building works, with four joint ventures involving both Pakistani and international firms.

However, these international companies merely served as fronts, subcontracting the actual work to local firms while charging a 2% fee, leading to substantial financial losses. Furthermore, it was revealed that international criminals had pocketed a billion rupees through these fraudulent activities.

NAB examined over 400 bank accounts, corroborating the financial transactions linked to these contracts. Contractors were reportedly given a 20% premium to expedite work, but they failed to meet the stipulated six-month deadline, violating contract terms.

Compounding the issue, NAB discovered that a fake guarantee of Rs 2 billion had been submitted to the Peshawar Development Authority (PDA). Additionally, local contractors provided a forged audit report to secure their contracts, which NAB was able to verify as fraudulent through consultations with chartered accountants.

The investigation also disclosed that individuals claimed by the foreign firms to be actively involved in the BRT project had only visited Pakistan for short durations over the past five years. While contractors initially filed a Rs 66 billion claim with the PDA, NAB's intervention ensured the project was completed within its original budget, yielding a further Rs 9 billion savings for the national treasury.

NAB not only submitted the names of implicated individuals for inclusion on the Exit Control List (ECL) but also took measures to facilitate their return via Interpol, including issuing red warrants for the owners of the firms involved. The bureau played a pivotal role in mediating discussions between contractors and the PDA, overseeing negotiations that culminated in a settlement.

Under the terms of this agreement, contractors withdrew all claims, including those at the International Court of Arbitration, while the PDA agreed to a payment of Rs 2.6 billion. Following the formalization of this agreement in early September, contractor representatives recorded statements in the Accountability Court of Peshawar and submitted the settlement documentation.

By mid-September, the International Court of Arbitration acknowledged the withdrawal of claims by the contractors. Furthermore, in the third week of September, all parties involved submitted the agreement to the Peshawar High Court, resulting in the closure of related cases.