Asif Ali Khan
PESHAWAR: A government audit report has flagged financial irregularities worth more than Rs16.94 billion in Khyber Pakhtunkhwa’s minerals sector.
The audit report seen by ChitralToday has raised serious questions about the collection of public revenue, enforcement against illegal mining and the management of the province’s mineral resources during the Pakistan Tehreek-e-Insaf (PTI) government’s over 13-year-long tenure.
According to the report, the audit findings covered illegal extraction of minerals, failure to recover outstanding dues from contractors, non-collection of excise duty and royalties, and the leasing of government land at rates substantially below those cited as applicable.
The auditor general has recommended an inquiry to determine responsibility for the irregularities.
The figures cited in the report point to significant gaps in the administration and protection of public revenue.
Illegal Mining & Unrecovered Dues
The report identifies illegal mining as one of the major sources of alleged revenue losses. More than Rs8 billion was lost through illegal mining during 2022 and 2023.
The audit report also identified Rs4.31 billion in outstanding dues from contractors that had not been recovered. The failure to collect such substantial amounts, if confirmed by the underlying records, would raise concerns about the enforcement of contractual obligations and the mechanisms used by the department to protect the provincial exchequer.
Another Rs3.08 billion in losses was attributed to illegal mining despite the presence of departmental inspectors and checkpoints.
It added that unauthorised extraction continued even though monitoring arrangements were in place, prompting questions about how effectively those arrangements were functioning.
Sand, Gravel Extraction and Waived Dues
The audit report also identified Rs3.07 billion in alleged losses associated with the unauthorised extraction of sand and gravel for road construction and small dam projects.
The audit also found that Rs547.2 million in excise duty on minerals had not been collected. In addition, outstanding dues exceeding Rs810 million associated with coal, bauxite, limestone and soapstone mines were waived, it added.
Govt Land Leased at Lower Rates
The audit findings extend to several other districts of Khyber Pakhtunkhwa, indicating that the revenue collection concerns were not limited to Peshawar or a single category of mineral activity. The non-recovery of dues associated with small dams in different districts resulted in reported losses exceeding Rs530 million.
According to the report, the auditor general recommended an inquiry into the alleged irregularities to establish responsibility.
A transparent investigation would need to examine the underlying records, identify the officials and contractors concerned, assess compliance with the applicable rules and determine whether the reported losses can be recovered.
The report also alleged discrepancy in the leasing of land belonging to the minerals department in Peshawar.
According to the report, the land was leased at Rs200 per acre against a stated rate of Rs10,000 per acre. The difference reportedly resulted in a loss of Rs140 million to the public exchequer.
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