NAB starts Investigation into Rs3bn Corruption in Sindh Solar Panel Project

2026-01-26 - 14:59

ISLAMABAD – Another corruption scandal worth more than Rs3 billion unearthed from Sindh’s Energy Department, as multiple investigations by the National Accountability Bureau (NAB), the Federal Board of Revenue (FBR) and parliamentary bodies uncover large-scale fraud, tax evasion and suspected money laundering in World Bank–funded solar energy projects. The scandal centres on flagship solar panel distribution scheme aimed at providing 200,000 solar units to low-income households, financed through a $100 million World Bank loan. Instead of relief for the poor, investigators say the project became a vehicle for forged documents, inflated payments and collusion between contractors and government officials. After a formal notice from NAB, Sindh Chief Minister Sindh Syed Murad Ali Shah approved the transfer of all project records and documentation to the accountability watchdog. NAB has launched a full-scale probe into allegations that the contracting company manipulated official paperwork to embezzle Rs3.02 billion. The contractor, allegedly in collusion with project staff, failed to supply the required number of solar panels but falsely showed the project as completed in official records. Investigators believe large sums were siphoned off through document falsification and fraudulent reporting. The scandal deepened further when a separate but related case of massive under-invoicing, tax evasion and trade-based money laundering was exposed before the Senate Standing Committee on Economic Affairs. The explosive report presented by FBR revealed that solar home system kits imported under the Sindh Solar Energy Project (SSEP) were declared at just $16 to $23 per unit for customs and tax purposes, while the World Bank paid up to $112.44 per unit to suppliers — a staggering 700 per cent price difference. Karachi-based company Beyond Green imported over 200,000 solar kits between December 2024 and July 2025. Despite unusually low declared values, several consignments were cleared through the Green Channel, raising serious questions about oversight and risk profiling. Subsequent verification found that goods declarations submitted to the Sindh government were fake or tampered with, while the same solar kits were later supplied to the provincial government at drastically inflated prices. Investigators also uncovered fake invoices worth $12.5 million and evidence of third-party remittances routed through UAE-based entities, strengthening suspicions of money laundering, foreign exchange violations and fund layering. Authorities reassessed the transactional value at $103.08 per unit, issued show-cause notices and referred the case for action under the Anti-Money Laundering Act, along with a comprehensive sales tax audit. Despite the project’s completion deadline in July 2025, around 30,000 solar kits remain undistributed. Sindh cabinet has referred the matter to the Enquiries and Anti-Corruption Establishment, a forensic audit is underway, and NAB has formally taken cognisance of the case. However, despite the gravity of the allegations, no officials have been suspended so far, drawing sharp criticism. The revelations also triggered anger in the Senate over the continued absence of Economic Affairs Minister Ahad Khan Cheema and senior bureaucrats, with lawmakers warning that repeated non-attendance reflects contempt for parliamentary oversight and weakens accountability mechanisms. Sindh Solar Scandal: Fake Invoices, Fund Layering, and Tax Evasion rock mega project