NAB Raises Concerns Over Placer Gold Mining Auction in Khyber Pakhtunkhwa
The National Accountability Bureau (NAB) has expressed concerns over irregularities in the auction and operations of placer gold mining along the Indus and Kabul rivers in Khyber Pakhtunkhwa (KP). The bureau has cautioned that these irregularities may have caused the province significant financial losses.
According to NAB, the reserve prices set for gold block auctions were allegedly underestimated, creating potential benefits for certain bidders. Reports further suggest that leaseholders have been subletting their rights, charging between Rs. 500,000 and Rs. 700,000 per excavator per week. With over 1,500 excavators reportedly in use, estimated weekly revenues range from Rs. 750 million to Rs. 1.05 billion, while official government receipts remain comparatively small.
Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur has defended the auction process, stating that his government raised the minimum reserve price for gold blocks to Rs. 1.1 billion, compared to Rs. 650 million in earlier years. He highlighted that four blocks were leased for nearly Rs. 4.6 billion over ten years and emphasized that, unlike in the past, his administration took action against unchecked illegal mining. The Chief Minister also noted that NAB officials were informed about the auction and that one of its officers was present during the proceedings.
NAB’s internal review, however, pointed out several concerns, including delays in finalizing contracts, suspension of geological mapping, and potential violations of the KP Auction Rules 2022. The watchdog also highlighted environmental and operational lapses by leaseholders, such as the absence of environmental impact assessments, non-compliance with regulatory requirements, and unsafe mining practices.
The bureau has urged authorities to take immediate corrective measures to ensure transparency, safeguard public revenue, and protect natural resources from further damage.
