- Former VBS Mutual Bank CFO Philip Truter has been sentenced for crimes relating to the downfall of the now-defunct bank
- Truter received 10 years in prison for financial crimes linked to the looting of over R2 billion
- Seven years of the sentence is direct imprisonment while a further three years have been suspended for five years
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Former VBS Mutual Bank CFO Philip Truter has been sentenced to a 10-year prison sentence.
This is for crimes in relation to the looting of over R2 billion which inevitably led to the downfall of the bank.
Seven years of the sentence are direct imprisonment while the remaining three years were suspended for a period of five years.
SowetanLIVE reports that Truter had entered into a plea agreement with the government which saw the former executive pleading guilty to some charges in addition to turning state witness.
Truter had faced charges of corruption, fraud, racketeering and money laundering for his involvement which saw him benefiting R5 million in kickbacks.
News24 reports that Truter was set to appear on Thursday along with seven other suspects. These co-accused included former VBS chairperson Tshifhiwa Matodzi, CEO Andile Ramavhunga and former treasurer Phophi Mukhodobwane.
However, he would eventually appear alone on Wednesday where his case was heard at the Specialised Commercial Crimes Court.
The plea agreement Truter entered into with the state included him pleading guilty to:
- accounting fraud for falsely inflating assets
- corruption in that he accepted R5 million in kickbacks
- money laundering
- failure to submit his 2018 income tax returns to Sars
Earlier, Briefly.co.za reported that almost two years after over R2 billion was stolen from VBS Mutual Bank, numerous officials, including board members and the chief KPMG auditor, have either been arrested or will soon be taken into custody.
The Hawks and a team from the National Prosecuting Service carried out an intense early morning operation in July.
This raid included search-and-seizure operations at the homes of those arrested. Among those arrested is Tshifhiwa Matodzi.
Matodzi is the former VBS and Vele Investments chairperson and believed to be the ringleader of the theft from the bank.
Matodzi himself, according to forensic investigations, pocketed a hefty R325 million. The majority of the funds stolen were deposited by local and district municipalities from around South Africa.
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