On receipt of complaints, the National Accountability Bureau authorised an inquiry against former police chief Malik Naveed and senior police officers in Khyber Pakhtunkhwa and others for alleged embezzlement in procurement of SMG, ammunition, heavy weapons, bullet-proof jackets among others in 2008-2010 by violating government rules.
They caused a loss of Rs 2.03 billion to the state exchequer, an official statement issued here said.
An amount of over Rs 7 billion was released by federal and provincial government for recruitment, training of police personnel and procurement of weapons and equipment.
During the course of inquiry, it was revealed that the contractor in connivance with other accused persons was controlling the entire process of competition of bids to get the contract.
The contract was awarded to a firm having no previous experience of supplying such items and for which payments were made in advance, the statement said.