KP Government Launches 15-Day Inquiry into Multi-Billion Rupee Gold Mining Scam

KP Government Orders High-Level Probe into Placer Gold Mining Irregularities

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has initiated a full-scale investigation into alleged corruption and procedural violations in the auction of placer gold mining blocks along the Kabul and Indus rivers. The move follows revelations of major irregularities flagged by the National Accountability Bureau (NAB), which warned of massive losses to the national exchequer.

According to official sources, the provincial cabinet, chaired by Chief Minister Ali Amin Gandapur, reviewed the matter in detail after NAB identified flaws in feasibility studies, manipulation in reserve price assessments, illegal subletting of mining leases, violations of environmental laws, unsafe mercury usage, and the absence of necessary No Objection Certificates (NOCs).

During the meeting, the Secretary for Minerals proposed an immediate suspension of the mining process until a thorough probe is completed. After deliberations, the cabinet decided to launch an inquiry instead of halting operations outright.

High-Level Committee Formed

As per a notification from the Administration Department, a high-powered committee has been formed under the chairmanship of the Chief Minister’s Adviser on Anti-Corruption, Brig (R) Musadiq Abbasi. The panel also includes the Chairman of the Provincial Inspection Team, the Advocate General of KP, and retired Mines Department officer Engineer Fazal Raziq. The committee has been instructed to complete its findings and submit a detailed report within 15 days.

The body will scrutinize every aspect of placer gold exploration — from feasibility assessments to final auctions — and determine the involvement or negligence of relevant government departments and district administrations. The committee will also investigate whether any officials played a role in facilitating the alleged irregularities.

Crackdown on Illegal Mining

In parallel with the inquiry, the KP government has launched an extensive operation against unauthorized gold mining activities along the Indus River in Swabi, Nowshera, and Kohat districts. Under Section 144, all illegal operations have been shut down, with machinery, vehicles, and other equipment being seized on the spot.

NAB had previously cautioned that procedural lapses and mismanagement in placer gold block auctions were causing financial losses running into trillions of rupees. The ongoing inquiry is expected to fix responsibility, tighten regulatory controls, and restore transparency to KP’s mineral development sector.