Former VBS executive sentenced in court

Filed in Latest News by on October 9, 2020 0 Comments

Former VBS executive sentenced in court –

We( tea) gladly inform you that the Former VBS executive has been sentenced in court

The former Venda Building Society (VBS) Bank Chief Financial Officer, Philip Truter, has been sentenced to seven years in prison after pleading guilty to various charges of fraud, corruption, money laundering and racketeering.

In total, Truter was sentenced to 10 years imprisonment, three of which were suspended by the Palm Ridge Specialised Commercial Crimes Courts on Wednesday.

VBS was placed under curatorship in March 2018 after facing challenges following the board of directors and executive management’s failure to manage the institution’s rapid growth funding and its liquidity.

As a result, a staggering R1.9 billion was looted from the bank before its collapse, Advocate Terry Motau SC’s forensic report found earlier this year.

According to the National Prosecuting Authority (NPA), Truter entered into a plea bargain with the State for a reduced sentence.

“He was complicit and active during the VBS debacle and has decided to come clean.

“The law enforcement agencies always encourage either whistle-blowers or accused persons who want to make a full, frank, honest and open disclosure about their involvement and their ill-gotten gains,” the NPA said in a statement.

The NPA said that there are times when law enforcement will need the cooperation of insiders – especially where corruption is involved – adding that it can effectively be beaten from the inside.

“Many of these schemes are fairly closed and only a [tight] inside group will have the know-how of the shenanigans that transpired. Someone like Truter, who decided to take responsibility for his actions, will always be encouraged to talk to the State and such honesty is welcomed,” the NPA said.

“Further legs of the VBS investigation by the Hawks and the NPA are progressing well,” the NPA said.

Truter was the eighth suspect to appear. Also among the accused, who all pleaded not guilty, are former VBS chairperson Tshifhiwa Matodzi, VBS former Chief Executive Andile Ramavhunga, former Treasurer Phophi Mukhodobwane, former KPMG auditor Sipho Malaba, SAPS Chief Financial Officer Lieutenant-General Avhashoni Ramikosi, and former non-executive VBS board members Ernest Nesane and Paul Magula.

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