Khyber Pakhtunkhwa audit reveals massive mineral sector corruption

A government audit report has uncovered widespread and organized corruption within the minerals department of Khyber Pakhtunkhwa during the PTI administration. The report indicates that the provincial treasury suffered losses exceeding 16.94 billion rupees in a single year.

Key findings from the 2022-2023 period include over 8 billion rupees lost to illegal mining facilitated by criminal collusion and official patronage. Additionally, 4.31 billion rupees in dues from defaulting contractors were intentionally left uncollected. The report also highlights 3.08 billion rupees lost due to illegal mining occurring despite the presence of checkpoints and inspectors, and 3.07 billion rupees lost through the illegal extraction of gravel and sand intended for highways and small dams.

Further discrepancies include the failure to collect 547.2 million rupees in excise duties and the waiver of over 810 million rupees in arrears from coal, bauxite, limestone, and soapstone mines. In Peshawar, departmental land was leased for only 200 rupees per acre instead of the standard 10,000 rupees, resulting in a 140 million rupee loss. The Auditor General has recommended a formal inquiry into those responsible.