4 Dec 2010

$1.5 million pension theft uncovered

6:20 pm on 4 December 2010

Benefit fraudsters have been caught stealing $1.5 million worth of pensions by pretending dead relatives were still alive.

In 16 cases discovered by a fraud team at the Ministry of Social Development, family members were forging the signatures of their relatives, then claiming the money.

In the largest single case, $176,000 was stolen by Fisilala Uea, who claimed her grandfather's pension for 15 years after his death.

So far, eight people have been convicted and sentenced. A further seven people have pleaded guilty and are awaiting sentencing.

Ministry fraud team leader Hilary Reynolds says weekly matches are now made between their own records and the official death register to stop this type of theft happening.

The ministry is seeking repayment of all of the money.

The unit was established in 2007.

Claims of privacy invasion

Beneficiary rights group the Rotorua People's Union says people's privacy is being invaded by Government departments that are sharing their personal information to investigate fraud.

Spokesperson Paul Blair says everyone needs to be on guard about how their information is being used.

However Hilary Reynolds says people should not be worried.

She says the ministry now does weekly matches between its records and the official death register to stop this type of theft happening.