Former VBS Mutual Bank CFO Phillip Truter now a state witness


Former CFO of the now-defunct VBS Mutual Bank, Phillip Truter, has confirmed that he’s turned state witness against his seven co-accused.

Truter has been sentenced to an effective seven years behind bars by the Specialised Commercial Crimes Court, sitting in Palm Ridge Magistrate’s Court, east of Johannesburg.

He pleaded guilty to all six charges against him, including corruption, fraud, and tax evasion. The seven other accused in the R2.7 billion VBS looting scandal are expected to appear in court tomorrow.

Truter inflated amounts in the annual financial statements of VBS to portray the financial status of the bank as healthy.

He also accepted a R5 million gratification to conceal the theft of money from the bank.

In 2018, he received two bonuses each worth R1 million but failed to declare this to SARS.

Truter left the court soon after sentence was handed down, without uttering a word to the throng of journalists waiting for his comment.

ANC fires mayor involved in VBS corruption

In August, the African National Congress in Gauteng fired Merafong Municipal Executive Mayor, Maphefo Letsie and recalled Boysie Maneli from Parliament.

Letsie and Maneli have been fired for not taking action against municipal officials who were involved in the VBS bank corruption.

Maneli is the former Mayor of the West Rand Municipality. However, the ANC provincial executive committee has cleared Johannesburg regional chairperson, Geoff Makhubo of any wrongdoing.

Eight accused in VBS case granted bail

The Palm Ridge Regional Court in Ekhuruleni granted bail of R100 000 to each of the eight accused in the VBS Mutual Bank in June.

In delivering his ruling in their bail application, Magistrate Brian Nemavhidi said in view of the state opposing bail, he did not deem it necessary to detain the applicants.

According to their bail conditions, the eight accused are not allowed to leave the borders of South Africa, they must hand over their passports, and may not apply for new passports and also not interfere with state witnesses.

The accused face 47 charges of fraud, racketeering, corruption, theft and money laundering which amounts to R2 billion. It is believed stokvel groups, pensioners and 20 municipalities lost billions of rands in the looting scheme.

Source: sabcnews