This case was related to the Bus Rapid Transit (BRT) Project in Peshawar. In 2018, NAB initiated an inquiry into allegations concerning the improper awarding of contracts, misappropriation of government funds, and the submission of fraudulent performance guarantees by the contractors.
The investigation by NAB disclosed that six civil works contracts for the BRT project—three for roads and three for buildings—were awarded unlawfully. The contractors involved included four joint ventures between Pakistani and international companies. However, the investigations indicated that these contracts existed solely on paper.
The international companies did not perform the actual work but instead subcontracted the projects to local firms, charging a 2% fee. This arrangement allowed the international firms to collect Rs1 billion. NAB examined over 400 bank accounts, which substantiated these transactions.
Additionally, a 20% premium was promised to the contractors for completing the work within six months, but they failed to meet the deadline. The investigation also revealed that a fraudulent guarantee of Rs2 billion was submitted to the Peshawar Development Authority (PDA).
Furthermore, the local contractors provided falsified audit reports to unlawfully secure the contracts. The Security and Exchange Commission of Pakistan (SECP) and chartered accountants from those contractor firms confirmed the audit reports were fraudulent.
Sources indicate that the contractors inflated the project's cost, filing claims of Rs66 billion with the PDA. However, as a result of the NAB investigation, the project was completed within the original budget, saving Rs9 billion.
The sources also noted that NAB identified all individuals involved in the investigations, placing them on the Exit Control List (ECL). Moreover, Interpol issued a red warrant to facilitate the return of a firm owner to Pakistan.
NAB K-P facilitated negotiations between the contractors and the PDA on this issue, overseeing the entire process and offering all necessary support. Consequently, an agreement was reached between both parties.
According to the agreement signed in the first week of September, the contractors retracted all their claims, including those related to the ICA case against the provincial government, while the PDA compensated the contractors with only Rs2.6 billion.
The contractors' representatives also provided their statements in the Peshawar accountability court and submitted a request to the ICA to withdraw their claims. The ICA confirmed via email to both the contractors and the PDA on September 16 that the contractors' claims were rejected.