The Khyber Pakhtunkhwa government has cancelled development tenders worth Rs8.92 billion covering 71 projects in Khyber district, after complaints alleged political interference, favouritism and advance kickbacks in the award of the contracts.

The tenders were withdrawn following an anonymous application to the Secretary of the Communication and Works Department, which objected to the selection and allocation of the projects. The secretary issued an order on 6 November cancelling tenders worth Rs8.92 billion, according to official sources cited in the reports. In a separate notification, the Executive Engineer of the Highway Division in Khyber announced the immediate cancellation of tender proceedings under various Annual Development Programme schemes, subject to procurement regulations and approval by the competent authority.

The complaints alleged that kickbacks of between five and 10 per cent of the total contract amounts had been sought, and that between Rs500 million and Rs900 million had been collected in connection with the schemes. The contracts were reported to have been initiated during the tenure of Chief Minister Sohail Afridi, and the complaints claimed that the work had been distributed on political considerations rather than on the basis of public need, regional priorities and ground conditions.

Sources further claimed that projects worth about Rs5 billion under the Annual Development Programme were allegedly associated with Naveed, described as a close associate of the chief minister, while schemes valued at about Rs3.9 billion were reportedly linked to MPA Abdul Ghani. Two development schemes said to be connected to Abdul Ghani and Naveed have also been brought under scrutiny. These are allegations contained in complaints and in accounts attributed to official sources. None of them has been proven, and no finding of wrongdoing has been made against any named individual.

An inquiry has been opened into the alleged financial irregularities and the distribution of development contracts in Khyber district, which is the chief minister's home district. As part of the investigation, Sub-Divisional Officer Bara Ziaullah was reportedly taken into custody for questioning, and investigators are said to have obtained information about alleged kickbacks in the award of contracts. Communication and Works Executive Engineer Riaz was also questioned, while officials reviewed departmental records covering the previous two years.

The cancellation notification said the decision was taken to allow fresh examination, verification and reassessment of the proposed road projects in view of actual site conditions, technical requirements, public needs and the broader public interest. The applicant who lodged the original complaint had urged the department to scrap the existing tenders and begin a fresh process after a transparent, merit-based review of the projects.

The episode adds to the scrutiny facing development spending in the province, where questions have also been raised about the use of public funds in other districts. The inquiry into the Khyber contracts is continuing, and the department has not yet said when a fresh tender process for the cancelled projects will begin.