ABBOTTABAD: Nearly two weeks after the unearthing of an audacious cheque fraud scheme targeting the Communication and Works (C&W) Department, a formal First Information Report (FIR) is yet to be registered.
The delay is raising serious questions about procedural efficiency and jurisdictional clarity in a case involving the potential loss of tens of millions of rupees in public funds.The scandal, which came to light on February 11, involves the use of forged cheques in an attempt to siphon money from departmental accounts.
While bank authorities successfully blocked three cheques worth a total of Rs. 38.45 million, it is alleged that at least one fraudulent cheque was encashed before the scheme was uncovered.
The incident has drawn renewed attention to financial vulnerabilities within government departments, as recently highlighted by the Khyber Pakhtunkhwa Finance Department.According to official documents, the case was set in motion when Zia-ur-Rehman, the Sub Divisional Officer (SDO) for C&W in Abbottabad, filed a written complaint with the Station House Officer (SHO) of Cantt Police Station.
Copy available with The News, SDO reported that on February 11, at approximately 11:00 a.m., he was alerted by a cashier at the National Bank of Pakistan that three cheques-numbered 102913, 102974, and 102982, with a combined value of nearly Rs. 50 million-had been presented for clearance against the C&W Department’s account.
Rushing to the bank, the SDO immediately identified a discrepancy, noting that the cheque book in question was not issued by his department. He promptly instructed bank officials to halt the transaction.
The complaint detailed that the SDO contacted the issuing bank branch to verify the cheques’ authenticity.After obtaining photocopies, it was conclusively confirmed by both the bank and the C&W Department’s own Accounts Branch that the instruments were forged and bore fake signatures.
Crucially, the SDO’s application noted that the cheques were linked to two individuals, identified as Imdad Hussain and Kala Khan, whose mobile phone numbers were handwritten on the documents, providing a potential lead for investigators. The SDO formally requested police intervention and legal action against those responsible.
Despite the detailed and urgent nature of the complaint, the local police reportedly refrained from registering an FIR, arguing that the matter falls outside their direct jurisdiction. The application was instead forwarded to the Anti-Corruption Establishment.
While the jurisdictional debate continues, sources confirmed that the Anti-Corruption Establishment had launched an inquiry and has taken a contractor, identified as Kala Khan, into custody for investigation.
However, the absence of a formal FIR means that a full-scale criminal investigation, with the legal powers it entails, has yet to begin.On a positive note, swift coordination between the C&W Department and banking authorities succeeded in freezing the suspicious accounts, securing the majority of the targeted funds and preventing a significant financial blow to the national exchequer. Preliminary investigations suggested the fraudulent cheques were designed to bypass mandatory financial controls, including pre-audit and treasury verification processes.
Officials within the C&W Department have reiterated that the department transitioned to a digital payment system on December 31, 2025, reinforcing their stance that the paper cheques in question were entirely fake and not part of the official financial system.Meanwhile, the Finance Department acted swiftly, coordinating with banking authorities to freeze the involved accounts. This prompt action secured nearly Rs. 40 million, preventing a much larger loss to the national exchequer.
In response to the breach, the Finance Department took an administrative action as Sardar Aftab Ahmed, the District Accounts Officer Abbottabad, was directed to report to the Finance Department immediately.
A divisional accounts officer was assigned additional charge to secure all relevant records and facilitate the ongoing inquiry.A formal fact-finding inquiry was launched to fix responsibility and recommend disciplinary and legal action.
The Finance Department issued a directive to all District Accounts Offices and administrative departments, particularly the C&W Department, to strictly adhere to financial controls, including mandatory pre-audit, treasury verification, and enhanced internal oversight.
