Pension fund slammed for R2m payment to fake claimant
A pension fund has been slammed for failing to properly investigate a claim by a woman who was presented as the deceased’s live-in girlfriend before allocating her a portion of his R2m death benefit, reports IoL.
The woman later admitted to the Pension Funds Adjudicator that she had never met the deceased and had never been in a relationship with him, saying she had been persuaded by a friend to submit a false claim in the hope of making quick money.
The case also exposed a separate error by the Becsa Provident Fund, which initially paid the deceased’s family incorrect amounts from the benefit and only corrected a shortfall of more than R325 000 after the beneficiaries repeatedly questioned the payments.
The dispute over the alleged girlfriend emerged when the deceased’s mother rejected the allegation that her son had been living with the woman.
The fund, however, said the alleged girlfriend had signed an affidavit stating she had been in a relationship with the deceased, lived with him and was financially dependent on him.
The fund also relied on an affidavit from the deceased’s landlord and friend, who it said corroborated the woman's claims.
However, with the two sides presenting conflicting versions, Pension Funds Adjudicator Lebogang Mogashoa joined the alleged live-in girlfriend to the proceedings.
Her response dramatically changed the case. She admitted that she had never met the deceased and had never been in a relationship with him, notes IoL.
According to her explanation to the adjudicator, a friend had approached her and told her about a sickly man who was in hospital and suggested that she could help her friend obtain fast cash in connection with the man.
She followed the instructions but later became concerned that she could be implicated in fraud.
She also confirmed that she had not received any of the benefit proceeds.
The adjudicator described the matter as a ‘classic example’ of the dangers of blindly relying on affidavits without using other reasonable methods to verify and authenticate the allegations.
The fund was ordered to conduct a fresh investigation, identify the deceased’s beneficiaries while taking the findings of the determination into account, and thereafter allocate and distribute the death benefit.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
