Pension fraud: Govt official held

2003-05-16 12:10

Pretoria - An employee of the Government Employees Pension Fund was arrested on Friday for alleged corrupt activities, the police reported.

Spokesperson Senior Superintendent Mary Martins-Engelbrecht said the 31-year-old man allegedly supplied information to outside parties for the purposes of fraud.

He was to appear in the Specialised Commercial Crimes Court in Pretoria later in the day on fraud and corruption charges.

Members of the police's serious economic offences unit took him into custody at the Pretoria offices of the fund.

Martins-Engelbrecht said the arrest followed an intensive police investigation in co-operation with a forensic audit firm.

The probe was initiated by the National Treasury which manages the pension fund.

Martins-Engelbrecht said the man allegedly "sold" personal details of fund members to outside individuals, who used the information to commit fraud.

"He allegedly facilitated the payment of benefits to beneficiaries at a fee in collaboration with - and to the benefit of -- outside organisations."

More arrests were expected with regard to outside companies suspected of being involved, Martins-Engelbrecht said.

- SAPA