Truter’s conviction gives Hawks, NPA a boost in VBS case

Phillip Truter, the former CFO of VBS Mutual Bank, on Wednesday admitted to all the counts he was facing and was sentenced to an effective seven-year jail term.

Truter was among eight people who were arrested and charged in June this year in connection with the plunder of the bank.

The NPA and the Hawks said Truter’s conviction and sentence put them in good stead to mount a strong case against the seven other accused.

Seven of his co-accused indicated they would defend their case, which continues in the Johannesburg Specialised Commercial Crimes Court, sitting at the Palm Ridge Magistrates’ Court, on Thursday.

The accused does not have any excuse in law for his actions.

On Wednesday, Truter’s case was separated from those of his co-accused and he entered into a plea and sentence agreement with the state.

In exchange for pleading guilty to all six counts, all counts were treated as one and he was sentenced to 10 years, three of which were suspended for five years.

Among the charges he faced, two were for his role in facilitating the looting of the bank. He admitted to misstating the bank’s financial statements for the year ending March 31 2017.

“The accused does not have any excuse in law for his actions,” the plea and sentencing agreement read.

Truter also admitted to a count of corruption, in relation to receiving gratification from former VBS Bank chairperson Tshifhiwa Matodzi to facilitate the widespread impoverishment of VBS’s depositors for the benefit of Matodzi and his associates.

The gratification mentioned in Truter’s conviction is also captured in a report by Terry Motau SC, who was appointed in 2018 to investigate the affairs of VBS in February 2018.

Motau said investigations captured in his report released in September 2018 – known as “The Great Bank Heist” – revealed that the perpetrators of the heist at VBS made away with R2bn.

In the report, Motau said former head of treasury at VBS, Phophi Mukhodobwane, testified that Matodzi had instructed him on October 5 2017 to make “bonus” payments from the Vele account, including an amount of R5m to be paid into the account of Truter’s company Shangri-La at First National Bank.

Motau said Truter stated in his testimony that though he had been promised R5m, he had actually received R2m.

The report stated that on March 19 2017, Matodzi met with Mukhodobwane and Truter, where Matodzi gave instructions to them to carry out an audacious scheme to further impoverish VBS for the benefit of Matodzi and a large number of his associates.

One of the instructions was for Truter and Mukhodobwane to wipe out the overdrawn balances on some 34 accounts held at VBS and credit those accounts with fictitious amounts of about R249m in total.

Truter also agreed to a count each of racketeering, money laundering and failure to submit a tax return.

Truter stated in his testimony that although he had been promised R5m, he had only actually received R2m.

Magistrate Jeremy Janse van Vuuren confirmed the conviction and sentence.

“The court is satisfied that the sentence is just and competent,” the magistrate said.

NPA spokesperson Sipho Ngwema said Truter has undertaken to co-operate with the state’s case.

“He is going to assist us with evidence which relates to other accused who are going to appear tomorrow at the same court with regards to shenanigans that took place at VBS. We are certain he is going to strengthen our case,” Ngwema said

Hawks spokesperson Brig Hangwani Mulaudzi said the state had a watertight case against the remaining accused.

Mulaudzi said the team handling the case had managed to prove that Truter was guilty and he had no choice but to plead guilty.

The remaining accused, who are expected to attend on Thursday, are Matodzi, former VBS Mutual Bank CEO Andile Ramavhunga, Mukhodobwane, former KPMG partner Sipho Malaba, former police officer Avashoni Ramikosi and former Public Investment Corporation executives Ernest Nesane and Paul Magula.