RIYADH, 13 May 2003 — Security agencies are interrogating four bank employees in the central city of Hail for allegedly embezzling money belonging to 12 pensioners.

Three of the alleged embezzlers denied any wrongdoing but the fourth has admitted the charge, informed sources told Arab News.

They said the bank became suspicious of the four employees after observing unusual movement in their accounts. The sources estimated the embezzled amount at more than SR2 million.

According to the charges, the four employees exploited the ignorance of the victims about legal matters related to closure of accounts.

The amounts from the Pensions Fund were directly deposited in the accounts of the four employees, instead of being transferred to the beneficiaries’ accounts.

The scandal surfaced while the Pensions Fund was planning to introduce electronic fingerprinting to prevent fraudulent practices.

Muhammad Abdullah Al-Kharashi, director-general of the fund, told Arab News that the plan to use fingerprinting technology coincided with the modernization of the pension laws for both civilian and military officers.

Banking sources told Arab News that the fingerprinting system would ensure direct payment of pensions to the pensioners.

At present more than 572,000 people receive money from the Pensions Fund, which spends about SR1.2 billion monthly on pensions.

The director-general emphasized the strong financial position of the fund, adding that it was capable of fulfilling all its financial commitments.

“The pension system in the Kingdom has many good features which don’t exist elsewhere,” he told Okaz newspaper.

The fund, established some 40 years ago, was transformed into an independent organization under the Finance Ministry last year.

The fund has an executive president under the new administrative structure.

Al-Kharashi said civil servants, military officers and private employees would be represented on the fund’s new board.

The fund has investments in national projects and institutions including Saudi Telecom Company and the National Commercial Bank.