The National Accountability Bureau (NAB) has revealed significant irregularities in the auction and exploration of placer gold blocks along the Indus and Kabul rivers, asserting that the Khyber Pakhtunkhwa (KP) province is suffering losses worth trillions of rupees. According to official documents, NAB’s inquiry found that the minimum reserve price for the gold blocks was deliberately miscalculated. Furthermore, a key 2015 study by the National Centre of Excellence in Geology, which identified substantial gold reserves, was completely ignored in the process, and the provincial mining department allegedly intervened to benefit specific bidders instead of following its own auction rules.
In defense, KP Chief Minister Ali Amin Gandapur stated that his government auctioned the blocks at a record high minimum price of Rs. 1.10 billion, selling four blocks for approximately Rs. 4.6 billion. He emphasized that this was a significant increase from previous auctions and that all legal requirements were fulfilled, with a NAB officer present during the process. The CM also questioned why a geological mapping project launched in 2022 to estimate new mineral resources was abruptly halted in November 2023, specifically for placer gold, suggesting a deliberate attempt to conceal information.
NAB’s investigation, discussed in a high-level meeting attended by top provincial officials, uncovered a range of serious violations beyond the flawed auction. Leaseholders are openly subletting mining rights, charging exorbitant fees per excavator, and generating a weekly income estimated between Rs. 750 million to Rs. 1 billion. The bureau also highlighted that mining operations have continued illegally without mandatory Environmental Impact Assessments, NOCs from the EPA, or proper safety measures, including the dangerous use of mercury.
The documents also reveal procedural failures, such as not finalizing agreements within the mandated 14-day period and issuing contracts despite long delays. Most alarmingly, mining operations were found to be continuing as recently as November 2024 in defiance of a stay order from the Peshawar High Court. With over 1,500 excavators operating illegally, NAB estimates that leaseholders have earned trillions of rupees, while the government treasury has received only a token amount, highlighting a massive governance and revenue failure.
