RSD 70 mln abuse of office in Serbia’s pension fund

An investigation against seven individuals suspected of abusing their office by illegally granting pension rights was launched by the Prosecutor’s Office for Organized Crime May 8, as reported by Serbian newswire Tanjug.

“The Prosecutor’s Office has launched an investigation after a questioning of six suspects that were arrested May 7,” organized crime prosecutor Miljko Radisavljevic stated, as cited by Tanjug. “The investigation has been launched against Ivan D., Zeljko A., Predrag D., Dejan F., Sredoje M. and Zorica O.. Zeljko A. is charges with abuse of official position, while the others are charged with the same crime committed through incitement and aiding in crime.”

Radisavljevic added that one of the suspects is still at large, but refused to reveal the suspect’s identity. Serbia’s Pension and Disability Fund (PIO) incurred losses of more than RSD 70 mln as a result of the scheme.

The six individuals are suspected of participating in an organized crime ring in order to allow a large number of people to illegally obtain pension rights from 2007 through 2014. All are suspected of forgery and falsifying the years of employment and length of insurance paid in PIO’s register.

According to the prosecutor, the suspects are believed to have charged for their services and thus wrongfully earned EUR 113,000 and more than RSD 3.3. mln.

The Special Court in Belgrade ordered a 30-day detention for five suspects, including the one on ether run.

“Zorica O. and Predrag D. were banned from approaching, meeting and communicating with certain people, ” stated Dusica Ristic, the court’s spokesperson, as cited by the newswire.

Police are investigating about 250 similar cases where evidence suggests that payments of pensions has been based on illegally acquired of retirement pension rights, which have caused more that EUR 3 mln losses for PIO.

Slavenko Grgurevic, who presides working group responsible for PIO’s restructuring, stated that granting false pension rights in only one of the criminal activities at PIO.

“The pensions case, which kicked off at PIO’s Belgrade branch, has gained a lot of momentum, but it is good the state has taken part in resolving this issue through sanctioning,” said Grgurevic, as reported by Tanjug.