An accountability court in Peshawar, Khyber Pakhtunkhwa, has affirmed the freezing of 75 bank accounts and two plots owned by directors of construction firms who were awarded contracts for the BRT (Bus Rapid Transit) project. This action is part of an ongoing investigation accusing them of corruption in the project.
Waqar Ahmad Chauhan, the director general of NAB Khyber Pakhtunkhwa, issued a freezing order under section 12 of the National Accountability Ordinance, 1999, on March 13 and forwarded it to the court for confirmation.
Administrative Judge Younas Khan confirmed the decision of the NAB’s director general after arguments were presented by representatives from the National Accountability Bureau and lawyers representing the three directors.
The two companies are part of a joint venture, which also includes a Chinese firm, that was awarded the BRT contract.
NAB initiated an inquiry in 2022 against the directors of construction firms for alleged corruption.
Last year, the three directors filed petitions in the Peshawar High Court against the NAB investigation. While the court permitted the bureau to proceed with the investigation, it prohibited the arrest of the petitioners.
Appearing before the accountability court, NAB’s additional deputy prosecutor general Mohammad Ali and prosecutor Manik Shah argued that the bureau had launched an investigation into alleged corruption in the project by the contractors. They emphasized that the NAB’s director general had the authority under section 12 of the National Accountability Ordinance 1999 to issue the freezing order if there were reasonable grounds to believe that the accused had committed an offense.
The lawyers representing the directors contended that freezing their accounts was unlawful as the director general did not possess such powers under the law. They argued that although the project was undertaken by a joint venture involving three companies, including a Chinese firm, no action was taken against the latter. They also mentioned that the JV contractors had approached the International Court of Arbitration seeking payment of Rs57 billion for outstanding disputed amounts.
The lawyers further argued that the disputes arising from the BRT contracts were to be resolved through a three-tier redressal mechanism, including a dispute board, as per the contract agreements. They asserted that the NAB had no authority to interfere in this process.
In response to their arguments, NAB representatives stated that the chairman had the authority to assign any officer to freeze property.
It is worth noting that the NAB initiated an inquiry in 2022, which was completed in March 2023, following which it was converted into an investigation.
