Defence ministry fraud suspect arrested

A former administration official in the Swiss defence ministry has been arrested and is under investigation for embezzlement, falsification of documents and fraud, the federal prosecutor’s office said Friday.

A former administration official in the Swiss defence ministry has been arrested and is under investigation for embezzlement, falsification of documents and fraud, the federal prosecutor’s office said Friday.

Deputy Prosecutor-General Felix Bänziger (r) and defense ministry spokesman Oswald Sigg said the 39-year-old man and his wife had been arrested at Zurich’s Kloten airport overnight.

The former administration official – who served as an officer in Switzerland’s militia army – is suspected of having embezzled nearly SFr9 million ($6 million) by calling up units for fictitious military service. He then siphoned off the advance payments that normally go toward soldiers salaries, food and accommodation.

Swiss Defense Minister Adolf Ogi has ordered an investigation into how such fraud was possible.

The case blew up earlier this week, when it was discovered that the suspect continued his fraudulent activities even though he had left the ministry on health grounds last September.

First investigative results revealed that the man’s fraud activities began in 1994. Prosecutors suspect the man may have profited from the fact that he worked for a secretive unit in the defense ministry.

Prosecutors said it remained unclear where most of the money had gone.


From staff and wire reports.