The lack of capacity in the justice system is opening the way for major retirement fund fraud which could leave pensioners destitute.
A year ago Gauteng businessman, Laurie Korsten, plundered more than R36 million from the pension fund of one of his family companies and used the money to finance the now bankrupt company.
The court appointed curator of the pension fund, Antony Mostert, laid numerous criminal charges against Korsten. A year later he is still waiting for the issue of a warrant of arrest.
Korsten was the man the previous government appointed to head an investigation into the restructuring of state pension funds, and who should have known better.
The Financial Services Board, which uncovered the fraud, has also expressed concern about the delays.
A spokesman for the board said however that enquiries had to be director to Mostert as the curator.
Mostert confirmed to Personal Finance that he has laid criminal charges against Korsten and he has also made legal moves to sequestrate Korsten and his brother.
On the criminal charges the police and the Gauteng attorney general's office say they do not have the capacity to carry out the forensic investigation.
The pensioners' committee, elected after the fraud was uncovered, has become so frustrated that they have written to both the Ministers of Justice and of Police. Their response has been a pro forma letter saying the matter is under investigation.
In an attempt to recover the money for the 280 active members and 65 pensioners, Mostert is also taking legal action against Old Mutual, claiming the life assurance company wrongfully issued a cheque for R32 million of the fund's money to a Korsten company and not to the fund itself. Old Mutual is opposing the action, with replying documents currently being prepared.
According to Mostert's report filed in the Gauteng Provincial Division of the High Court, Korsten and family members have woven a web of structures, trusts and companies, making it extremely difficult for fund members to recover their pension savings.
Mostert has managed to pull together about R7,4 million from various sources to pay pensions. He has also applied for the liquidation of a number of Korsten's companies in an attempt to recover money owing to the fund.
Korsten and a brother were two of the three trustees of the fund. The third trustee has told Mostert that he was unaware what the Korstens were doing with the assets of the fund.
One of the problems in detecting the fraud was that returns were not submitted to the Financial Services Board by fund trustees.