PESHAWAR: A recent audit of the Rs97 billion Khyber Pakhtunkhwa Cities Improvement Project (KPCIP) has revealed financial discrepancies amounting to Rs8.48 billion, including misappropriations, unlawful payments, and wasteful expenditures.
The findings have raised concerns over governance, oversight, and accountability in the province. The Asian Development Bank-funded project, launched in late 2022, aims to enhance urban infrastructure in Abbottabad, Kohat, Mardan, Mingora, and Peshawar, with completion expected by the end of 2026.
However, the audit highlights instances of financial mismanagement, including unauthorized work, cost escalations, and payments for unexecuted projects.
Misappropriated funds included Rs8.8 million paid for work that was never carried out and Rs11.2 million falsely claimed for fiberglass installation in a parking area. Fake measurements resulted in losses of Rs34.89 million, while Rs5.48 million was paid for excavation work at the Chlorination Building despite no physical progress. In total, Rs60.39 million was misappropriated through fraudulent claims.
