South Africa

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Fidentia pension fund fraudster J Arthur Brown part of Special Covid-19 parole

Fidentia pension fund fraudster J Arthur Brown part of Special Covid-19 parole
Former Fidentia boss J Arthur Brown (C) is seen among demonstrators at the Western Cape High Court in Cape Town on Wednesday, 15 May 2013. He was fined R150 000 and a given a suspended prison sentence for two fraud convictions. (Picture: Nardus Engelbrecht/SAPA)

Pension fund fraudster, J Arthur Brown, is one of around 19,000 low-risk prison inmates set to be released as part of President Cyril Ramaphosa’s Special Covid-19 parole dispensation.

Nineteen thousand “low-risk prison inmates” are to be released, Minister of Justice and Correctional Services, Ronald Lamola, announced in Pretoria on 8 May 2020.

Among them, Daily Maverick has confirmed, could be fraudster J Arthur Brown, who was serving a 15-year jail term at the Voorberg Prison in Stellenbosch.

He will be a free man if the parole board agrees with the recommendation. 

The release of inmates will take place over a 10-week period and will begin as soon as all Parole Board processes “had been flnalised and all relevant rehabilitation and pre-release programmes are attended”, Lamola announced.

This would be an opportunity for Brown’s victims to oppose parole but if the board feels Brown has served more than half of his sentence it will most likely approve his release.

In a statement, the Presidency said: “The parole dispensation will apply to low risk inmates who have passed their minimum detention period or will approach this period in the coming five years.”

“This dispensation excludes inmates sentenced to life imprisonment or serving terms for specified other serious crimes, including sexual offences, murder and attempted murder, gender-based violence and child abuse.”

The decision taken by the president to combat the spread of Covid-19 in correctional centres could relieve the country’s correctional services facilities of about 12% of inmates out of a population of 155 000.

 Lamola during his briefing said the action was not a decision they took lightly.

“This is not something the Department of Correctional Services can do with ease. Simply because the interest of justice and society demand the complete opposite from us.

“But the spread of the virus continues. We ought to act decisively and prevent this invisible killer from rapidly multiplying in our centres,” continued Lamola.

In 2014, the high-living Brown was sentenced to 15 years for the theft of R1.4-billion from pension funds of widows and orphans administered by his firm, Fidentia. 

He had originally escaped severe sentencing, receiving a R150,000 fine and a suspended sentence.

But the Supreme Court of Appeal overruled this and sent Brown to the slammer. Around 54,000 trusts were drawn in what became known as the Fidentia Scandal.

As Daily Maverick’s Rebecca Davis wrote on 2 December 2014, Brown, after his original conviction on two counts of fraud, launched a campaign to place the blame for Fidentia’s downfall on the Financial Services Board and the curators of Fidentia.

Brown had claimed that the true villains of the case were Dines Gihwala and George Papadakis, appointed as curators in 2007. Up until the curatorship, he alleged, Fidentia had been able to cover its liabilities.

Brown’s original case was postponed 16 times. In the SCA ruling the National Prosecuting Authority was chastised for its handling of the case.

Brown had lived a lavish life on the pension funds of widows and orphans investing their money in holiday homes and luxury vehicles.

Lamola, announcing the placement on parole of selected categories of sentenced offenders, said the president had taken the step in response to a call by the United Nations to all countries to reduce prison populations. 

This is so that physical distancing and self-isolation conditions can be observed during this coronavirus pandemic. Correctional Service facilities are considered a high risk for infection.

South Africa, like other countries, has had outbreaks of coronavirus infections among inmates and personnel, said Lamola.

“Inmates that will be affected by this decision will be placed on parole instead of having their sentences remitted. They will, therefore, continue to serve their sentence under Community Corrections until they reach their respective sentence expiry dates,” said Lamola.

National Commissioner of Correctional Services, Arthur Fraser added that the crimes committed by most of those who were up for this parole were “petty crimes or crimes of need.” It applies to low-risk inmates who have passed their minimum detention period or will approach this period in the coming five years.

The process will be judged on a case by case basis, while a comprehensive screening process will be undertaken. Discussions with victims will be done electronically.

The Judicial Inspectorate for Correctional Services (JICS) told Daily Maverick that it fully supports the decision, adding that it was something they had previously urged the government to strongly consider.

“JICS unreservedly welcomes the announcement of the release of 19000 prisoners to alleviate overcrowding and to mitigate the spread of the virus and to prevent uncontrollable outbreaks of COVID-19,” said Inspecting Judge, Justice Edwin Cameron.  “This is especially so since many other jurisdictions and countries have already released prisoners for these reasons. The releases have strong support in international law and practices”

Cameron added that Jics would afford its support and co-operation as an oversight body in assisting with any insights that may be required or requested during the next few weeks. DM

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