NAB helps KP recover Rs3.6bn indirectly

PESHAWAR: In a major development, the NAB Khyber Pakhtunkhwa has successfully facilitated the indirect recovery of Rs 3.6billion for the provincial government. This includes Rs1.1 billion recovered in the Galiyat Development Authority (GDA) and Rs2.5 billion worth of land re-mutated to the Forest Department.

However, in the both cases, neither the individuals responsible for causing loss to the national exchequer have been arrested nor has anyone been convicted.

According to a letter from the NAB KP received by the provincial government, the NAB initiated an inquiry based on reports of irregularities in the lease agreements of government rest houses and the Shangrila Hotel. The investigation revealed that in 2017, the KP government handed over 14 rest houses to the GDA which subsequently leased them out. The NAB discovered that the annual rent increase for five of these rest houses had been reduced from 15% to 7%, causing a loss of over Rs 760 million to the national exchequer over the lease period.

In collaboration with the GDA current management, the NAB facilitated renegotiation of lease agreements, reinstating the 15% annual increase in rental income. This action increased Rs 760 million in the GDA revenue.

Additionally, in 2021, the GDA leased 22 kanals for the Shangrila Hotel for Rs852 million, to be paid over 20 years, with a net present value (NPV) of Rs446.5 million. However, NAB evaluators from the State Bank of Pakistan determined that the NPV of the 22 kanals should have been Rs760 million in 2021, indicating a potential loss of Rs340 million to the national exchequer.

The letter further states that the NAB KP, in collaboration with the secretary Forests and his team, successfully re-mutated 628 kanals back to the KP Forest Department, with an estimated market value of Rs2.5 billion.

The NAB KP had initiated a major investigation into the illegal occupation of valuable land under the Forest Department in the Swat District, following a complaint. The NAB investigation team visited the Bahrain Tehsil of Swat District, conducted a detailed on-site inspection, and compiled a comprehensive report which revealed that 628 kanals in the Bahrain Tehsil, valued at approximately Rs2.5 billion, had been illegally transferred to private individuals in violation of Forest Department regulations. Around Rs2 billion worth of land was initially re-mutated, with an additional Rs500 million land added recently.

The NAB letter said the investigation team, led by senior officers, maintained continuous communications with higher authorities over four months to achieve this significant milestone. Their collaborative efforts, alongside support from the provincial government, ultimately resulted in the recovery of approximately Rs2.5 billion worth of land.