The Swiss Prosecutor’s Office said Tuesday that investigations in the Dino Bellasi fraud case, Switzerland’s worst defence ministry scandal in decades, had been extended to off-shore companies.

The Swiss Prosecutor’s Office said Tuesday that investigations in the Dino Bellasi fraud case, Switzerland’s worst defence ministry scandal in decades, had been extended to off-shore companies.

A spokesman for the office said investigators were following up leads on financial transfers involving companies registered on Guernsey and Jersey as well as the Virgin Islands.

The spokesman said that Bellasi was suspected of transferring abroad at least some of the SFr8.9 million ($5.9 million) he stole from defence ministry funds during his accounting work in the ministry’s intelligence unit.

Bellasi, 39, was arrested on August 13 on suspicion of having stolen the money by pocketing advance payments in cash for military refresher courses which never took place. His activities are said to go back to 1994.

Bellasi first claimed he was ordered by his superiors to steal the money in order to finance the formation of a shadow intelligence unit. But he later retracted that statement.

The scandal caused a political outcry and put pressure on Defence Minister Adolf Ogi, who has ordered a thorough probe into how such large-scale fraud could pass unnoticed.

Bellasi is also being investigated by military justice on suspicion that he violated military regulations banning the use of private arms and ammunition in Switzerland’s militia army.

He used the now confiscated weapons during regular target shooting practice in the army’s refresher courses at the Berne and Andermatt training grounds.

From staff and wire reports.

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