Khyber Pakhtunkhwa Hydel Development Fund audit flags Rs18.78bn in irregularities

An audit report has identified Rs18.78 billion in financial and administrative irregularities within the Khyber Pakhtunkhwa Hydel Development Fund. The report alleges a loss of over Rs5.79 billion to the provincial exchequer.

Key findings include the unauthorized transfer of Rs13.14 billion to the Pakhtunkhwa Energy Development Organization (PEDO) without cabinet committee approval. Additionally, Rs5.48 billion in profits from hydropower projects were reportedly not deposited into the provincial treasury, while Rs4.30 billion remained unutilized by PEDO, causing further profit losses.

The audit also highlighted wasteful spending, such as Rs179.2 million paid in rent for an unused building and Rs4.2 million spent on its renovation. Other irregularities noted include Rs7.6 million in unauthorized recruitment payments and an alleged Rs2.077 million fraud that remains uninvestigated despite directions from the Federal Investigation Agency (FIA). Auditors have recommended a formal investigation to assign responsibility for these discrepancies.