Pretoria -

An IT specialist accused of defrauding the labour department of R1.2 million was released on bail by the Pretoria Commercial Crime Court on Friday.

Labour department spokesman Page Boikanyo said Kenneth Martin Mahuluhulu, 32, was released on a R5000 bail because he was not considered a flight risk.

He would have to report to the Sunnyside police station once a week and was warned not to interfere with State witnesses and the investigation.

Mahuluhulu would be back in court on October 16.

Police arrested him on Wednesday at the University of SA in Pretoria, where he now worked, after he had been on the run for two years.

He allegedly colluded with a syndicate that included a former employee of the labour department's compensation fund, to submit fictitious claims to the fund between 2006 and 2009.

The fund acts as insurance for workers injured in the line of duty. - Sapa