Senior journalist Irfan Khan has exposed a corruption scandal worth more than Rs4.9 billion in Khyber Pakhtunkhwa in his latest vlog.
According to Khan, citing official documents and available evidence, the investigation focuses on the companies awarded contracts for gold exploration and extraction along the banks of the Kabul and Indus rivers in Khyber Pakhtunkhwa.
The report examines why the leases were issued despite a stay order from the Peshawar High Court, why the National Accountability Bureau (NAB) launched an investigation, the current status of the probe, whose roles are under scrutiny, and what steps the provincial government has taken in response.
Khan further claimed that after the matter came to light, NAB formally initiated an investigation on July 17, 2025. As part of the inquiry, NAB sought all relevant records from the Minerals Department and questioned the basis on which lease agreements worth more than Rs 4.9 billion were executed despite the Peshawar High Court’s stay order.
Journalist revealed that The Khyber Pakhtunkhwa Department of Minerals issues leases through auctions for the exploration and extraction of gold deposits along the banks of the Indus and Kabul rivers.
A comprehensive geological survey of these areas was conducted between 2012 and 2015, identifying locations with higher potential for gold deposits. Based on the findings of the survey, the government set reserve prices for each block, after which leases were awarded to various companies through open auctions.
The companies awarded gold exploration leases and contracts including Block (A) located in the Indus River, District Swabi was allotted for Rs 1.25 billion, Block (B) in the Indus River, District Swabi awarded to M/S Machko (Private) Limite was allotted for Rs 1.24 billion, Block (C) comprising the districts of Nowshera and Kohat in the Indus River was allotted to MS Himalaya Earth Exploration Private Limited for Rs 1.30 billion.
Block (D) in the Indus River, District Kohat was allotted to MS Shakardara Minerals Private Limited for Rs 1.11 billion. The total value of the lease agreements for these four blocks is over Rs 4.90 billion.
The combined value of the lease agreements for these four blocks exceeds Rs4.90 billion.
Following objections to the lease agreements, the Peshawar High Court (PHC) issued a stay order in the matter. The key question raised was how the lease agreements were issued despite the court’s order suspending further proceedings.
Later, on July 17, 2025, the NAB initiated an investigation and sought detailed records from the Minerals Department.
During its preliminary inquiry, NAB identified several alleged irregularities and sought explanations from the Minerals Department on various issues.
According to NAB, a major concern is why the 2015 geological survey and the 2022 mineral valuation were allegedly not considered while determining the reserve prices of the blocks. The bureau is also examining who made this decision and which government officials or other individuals were involved.
The investigation further found that a geological survey study initiated in February 2022 was halted in November 2022, which allegedly affected the accurate assessment of gold reserves. NAB is investigating why this technical process was discontinued and who may have benefited from the decision.
NAB also pointed out that publicity for failed auctions held in 2020, 2021 and 2022 was allegedly inadequate, limiting competition and potentially preventing the government from securing better financial returns.
Furthermore, NAB stated that the licensing authority issued allotment letters on November 13, 2024, despite the successful bidders failing to complete agreements within the required timeframe. The investigation is examining under what authority the allotment letters were issued when legal requirements had not been fulfilled.
Another key issue highlighted in the investigation is that some leaseholders were allegedly allowed to continue operations despite the Peshawar High Court’s stay order. NAB also noted that several leaseholders had not submitted mandatory Environmental Impact Assessments (EIAs) and mining plans required under the law.
According to NAB documents, more than 1,500 excavators were allegedly found operating illegally in these areas, raising further concerns over possible large-scale irregularities in mineral extraction activities.
During the investigation, allegations also emerged that some leases may have been awarded to benefit certain individuals, while accurate assessments of mineral resources were allegedly overlooked and private interests were prioritised over public interest.
The NAB investigation is currently ongoing. Initial findings suggest that the actual economic value of the lease agreements, currently estimated at Rs4.9 billion, could be significantly higher.
Reports indicate that the role of some political figures and government officials is also being examined. However, NAB has not yet established final liability against any individual, and no offence has been proven at this stage. The investigation remains in progress.
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