Police raid alleged defence veterans scammers

Thursday, December 23, 2010

Cape Town - The Department of Defence and Military Veterans has called on veterans to disregard calls by any parties to pay fees in return for pension fund assistance, as police today raided the Parow offices of alleged fraudsters.

Ntime Skhosana, the spokesperson for the Deputy Minister of Defence and Military Veterans, said the alleged scammers were using the Military Veterans Bill as well as the department's letterheads and speeches, to target ex-soldiers.

"According to information at our disposal, the fraudsters are alleging to be authorised by the newly established Department of Military Veterans to charge an admin fee in order to enable
unsuspecting veterans to access the proposed benefits immediately," he said.

"There are no fees payable in the Department of Defence for acquiring forms and government services like pensions," said Skhosana, who added that services were available at not cost to eligible persons.

The scam was first picked up by SA Legion two weeks ago and reported to the department.

Godfrey Giles, the president of SA Legion, said the veterans association believed hundreds of veterans were affected.

He had received hundreds of phone calls made to its offices in recent weeks by concerned members in the Western Cape.

Giles said the alleged scammers - some of them suspected ex-South African National Defence Force members - were informing veterans that by paying R80, they could access a pension of R35 000.

"In other cases we've had people that have now taken out loans of R700 and they have been promised a pension of over R3 000 for the rest of their lives," he said.

He said in a case in Bloemfontein, alleged fraudsters even used rubber stamps.

Skhosana said the department was co-operating with police to investigate the origin of this scam and were certain that these individuals will be found and subjected to the full might of the law.

He said the department was not aware that there has been any breach of the database and that the scam had spread via emails and word of mouth.

"They (alleged scamsters) should not be allowed to steal the spirit of Christmas and the festive cheer that all South Africans and the World are enjoying," he said.