The National Accountability Bureau (NAB), in its 25-year history, achieved its largest recovery in the Peshawar BRT Project, saving an astounding Rs168.5 billion. This remarkable recovery also led to the withdrawal of contractors’ claims totaling Rs 31.5 billion against the Khyber Pakhtunkhwa (K-P) government at the International Court of Arbitration (ICA). The case revolved around the controversial Peshawar BRT Project, marking a major milestone in NAB’s ongoing investigations.
The Peshawar BRT Project first came under scrutiny in 2018 when NAB launched an inquiry into allegations of illegal contract awards, embezzlement of government funds, and submission of fake performance guarantees by the contractors involved.
The investigation revealed that six key contracts for civil works, including three for road construction and three for buildings, were illegally awarded to four joint ventures between local and international firms. NAB’s findings showed that the contracts were merely on paper, with international firms pocketing 2% of the contract value and handing over the work to local contractors, earning Rs1 billion in the process.
In a detailed investigation, NAB examined over 400 bank accounts, confirming these fraudulent transactions. Additionally, a premium of 20% was paid to contractors to expedite project completion within six months, yet the deadline was not met. Moreover, fake guarantees worth Rs2 billion were submitted to the Peshawar Development Authority (PDA). Investigations by the Security and Exchange Commission of Pakistan (SECP) and chartered accountants confirmed that the audit reports submitted by local contractors were also fabricated.
As the inquiry progressed, contractors inflated the project’s cost and filed claims of Rs 66 billion with the PDA. However, thanks to NAB’s rigorous investigation, the Peshawar BRT Project was completed within its original budget, saving Rs 9 billion for the provincial government.
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NAB K-P played a critical role in mediating negotiations between the contractors and the PDA, ensuring transparency throughout the process. An agreement was eventually reached in early September, where contractors agreed to withdraw all claims, including the ICA case against the provincial government.
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The PDA, in turn, paid only Rs2.6 billion to the contractors. The ICA formally confirmed the rejection of the contractors’ claims on 16 September 2024, bringing the matter to a successful close. This significant recovery and the successful resolution of claims underscore NAB’s commitment to protecting public funds, particularly in major infrastructure initiatives like the Peshawar BRT Project.
