VBS former CFO sentenced to 10 years for fraud, corruption, money laundering
The National Prosecuting Authority (NPA) has secured its first conviction in the VBS Mutual Bank saga of 2018.
Former VBS CFO, Phillip Truter was convicted of fraud, corruption, money laundering, and racketeering by the Palm Ridge Speclialised Commercial Crimes Court on Wednesday.
Truter was sentenced to 10 years in prison with 3 years suspended. He’ll effectively serve 7 years behind bars.
Truter will now turn state witness and testify against other employees, government officials, and politicians who lined their pockets with more than R2.7 billion in funds stolen from the now defunct Limpopo-based bank.
The NPA said in a statement Truter was complicit and active during the VBS debacle.
“Truter, who pleaded guilty to charges of fraud, corruption, money laundering and racketeering, has undertaken to cooperate with the state’s case, which was investigated by the Hawks and guided by the NPA. He was complicit and active during the VBS debacle and has decided to come clean,” said the NPA’s Sipho Ngwema.
“The law enforcement agencies always encourage either whistle-blowers or accused persons who want to come clean to make a full, frank, honest, and open disclosure about their involvement and their ill-gotten gains.”
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The elite crime-fighting unit has urged other accused turned whistle-blowers to come forward to beat corruption from the inside.
Truter and 7 others were arrested in June.
“There are times where, especially in the realm of corruption, when law enforcement will need the cooperation of insiders. Many of these schemes are fairly closed and only a very close inside group will have the know-how of the shenanigans that transpired – someone like Truter who decides to take responsibility for his actions will always be encouraged to talk to the state and such honesty is welcomed,” Ngwema added.