‘Defence fund fraud’

Press, 17 July 1978, Page 8

‘Defence fund fraud’

NZPA Salisbury Under an unprecedented blanket of secrecy, the Rhodesian authorities are preparing to bring six people, including high-ranking Government officials, to trial for what is being described as the biggest financial scandal involving Government funds in the country’s history.

The Attorney-General, Brendan Treacy, confirmed that three people had been detained under the Emergen-cy-Powers Regulations and faced charges of fraud and evasion of exchange-control regulations. Three other people, Mr Treacy said, were facing trial on exchange-control violations and had been released on bail. The actual nature of the case and the amount of money involved have not been officially revealed. But the issue has become a talking point in a by-election campaign to fill a vacant Parliamentary seat. Parties opposing Mr lan Smith’s Rhodesian Front in the election have repeatedly called on the authorities to release details of the case and the names of those involved.

Spokesmen for the liberal National Unifying Force taking part in the election campaign describe the case as a “remarkable scandal involving fraud out of the defence fund.” But in spite of the calls, t h e authorities have remained silent and secretive.

Unconfirmed reports in Salisbury say Rhodesian policemen have accompanied one of the men involved to Switzerland in an attempt to recover money alleged to have been taken from the defence fund. The fund is used by Rhodesia to buy military aircraft, arms, and equipment. Most of the defence fund is held in dwindling foreign exchange reserves. The six people involved are said to include two highranking Government officials, two businessmen connected with customsclearing firms, and a former member of the Rhodesian Front.