PESHAWAR: The Bank of Khyber (BoK) paid Rs23.7 million in honorarium to a five-member committee tasked with investigating allegations of financial irregularities at the bank, according to a bank source, raising questions about the criteria used to approve the payments.
The investigation began after three private directors of the bank wrote to the Finance Committee of the Khyber Pakhtunkhwa Assembly, raising concerns about alleged financial irregularities and aspects of the bank’s operations.
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Following the complaint, the bank’s Board of Directors constituted a five-member inquiry committee comprising two board members, the company secretary, the provincial finance secretary and the funds manager of the Khyber Pakhtunkhwa Finance Department.
According to the source, the bank subsequently disbursed Rs23.7 million in honorarium to the committee members and paid the applicable taxes. The payments prompted questions about the rules governing such compensation, particularly the amounts paid to the company secretary and the Finance Department’s funds manager.
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The source questioned whether the responsibilities assigned to these two officials justified honorarium payments of such magnitude. The source also said the bank had experienced a significant rise in operating expenses, affecting its annual profitability.
Repeated attempts were made to obtain the bank’s official position from Company Secretary Raza Qazilbash, who was contacted several times and informed in writing of the questions concerning the payments. However, he had not responded by the time this report was filed.
