Fidelity responds to Sassa millions ‘heist’ in underground car park

The Fidelity Services Group (FSG) said it could not comment on what it called a “specific allegation” about how millions of rands in cash meant for social welfare grants allegedly changed hands in an underground parking lot at Cash Paymaster Services (CPS) offices in Rosebank, Johannesburg.

The shocking claim was revealed in an affidavit deposed by one of FSG’s former senior security officers.

Explosive allegations

In his affidavit, the FSG officer revealed how he and his colleagues collected and delivered cash to Nanda Pillay, who was COO of CPS at the time, and how it was placed into the boots of two vehicles — one of them Pillay’s luxury BMW.

FSG was the company appointed to secure the movement of money from depots and banks to social grant pay points nationwide.

Fidelity response

After contacting Fidelity CEO Wahl Bartmann for a response, the company sent The Citizen a written statement but failed to address the explosive allegations revealed by its former security officer.

“We cannot comment directly on any of these specific allegations, but we can confirm Fidelity provided services to CPS to move and secure cash, including the daily movement of cash at depots, pay sites, offices, branches, and ATMs.

“We confirm we complied with all Reserve Bank regulations and processes. We welcome any further investigation into these allegations and will cooperate fully with the relevant authorities,” FSG said.

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Transporting cash  

CPS was one of three companies the South African Social Security Agency (Sassa) appointed to pay social grants in cash at pay points across the country. FSG was appointed to transport and secure all the cash.

“Mr Wahl Bartmann was the person who instructed me personally via telephone to execute the collections and drop-offs, after which I chose the teams for each collection and drop,” the officer said in the affidavit.

“It was during 2010 that I made my concerns clear to Wahl that I am uncomfortable with being involved in the cash drops to Nanda without any paperwork, and that it is at least in contravention of the South African Reserve Bank codes and regulations in respect of handling or transporting cash.”

The movement of the cash in private vehicles and the lack of paperwork raise suspicions that the money was being stolen to benefit individuals who worked for CPS or were linked to the company in other ways, according to The Sunday Times.

There is no suggestion that Fidelity or its CEO, Wahl Bartmann, benefited from this cash.

Potential looting of state money

A source with direct knowledge of the affidavits and the investigations said the former Fidelity employee’s account was important in uncovering the potential looting of state money meant for the poor.

Pillay told The Citizen the cash was often delivered to CPS offices as the company had an automated teller machine to allow cash disbursements, but he denied that any of the cash ended up in his car.

Cash withdrawn from banks

In his earlier affidavit to the Zondo Commission, the former employee detailed three occasions on which a total of R11 million in cash was allegedly withdrawn from an Absa branch in Fourways Mall (R1 million between 2005 and 2006); a Nedbank branch between Fox and Marshall streets in the Johannesburg CBD (R4 million); and an FNB branch in Selby (R6 million during 2008/2009).

In two of the three instances, FSG officers used their private vehicles for the collections, and only once did they travel with an armoured car.

According to the affidavit, the officer and his colleagues were instructed “on about 20 other occasions” to pick up money from the CPS cash depot in Brits and take it to Pillay in Rosebank.

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