By Lehlohonolo Lehana.
Department of correctional services has confirmed that the former VBS mutual bank Chief Financial Officer (CFO) Phillip Truter is out on parole.
Truter was the first man to be sentenced for his role in the looting of VBS Mutual Bank.
He was released on parole in April after serving three years and six months of his effective seven-year sentence, correctional services department spokesperson Singabakho Nxumalo confirmed.
“Truter was admitted after that conviction and he then started serving the sentence. He was given a 10-year sentence with three years suspended for a period of five years, meaning that he had to serve a seven-year term,” said Nxumalo.
“He did serve the sentence, and after reaching the minimum detention period as per Section 72 of the Correctional Services Act, he was then considered for parole. Eventually, the parole board did place him out (on parole) on April 12 2024.”
He said Truter benefited from the special remission of sentence regime, which saw only two months of his incarceration being removed.
That would have been three years and six months that he reached on April 6, 2024. Yes, he did benefit from the special remission of sentence but that was very minimal. He only benefited by two months. So it really didn’t count much,” said Nxumalo.
It did assist him in terms of what is left of the entire sentence, as the seven years that was given will expire on October 6, 2025.”
Nxumalo said currently, Truter is being monitored by the department while he is on parole.
Truter had pleaded guilty to fraud, corruption, racketeering, theft and money laundering.
He was then sentenced to 10 years, three of which were suspended.
VBS was a South African mutual bank. In 2018, it was declared insolvent and bankrupt and placed under curatorship, with South African citizens and taxpayers defrauded out of roughly 2 billion rands.
Meanwhile former EFF national chairperson Dali Mpofu contends the red berets have never denied receiving “donations” from looted and defunct VBS Mutual Bank.
The party has been in the spotlight and criticised about receiving funds from the bank, but in an interview with Newzroom Afrika Mpofu said the party “never denied” receiving donations from VBS.
Last week former VBS Mutual Bank chairperson Tshifhiwa Matodzi was sentenced to 15 years in prison by the Pretoria high court after pleading guilty to 33 counts including corruption, theft, fraud and money laundering, which led to the bank’s collapse.
In his affidavit, he claimed he made donations to the EFF after meeting leader Julius Malema and his deputy Floyd Shivambu in exchange for positive publicity and to silence their criticism about the bank giving former president Jacob Zuma a loan for Nkandla. A lump sum of R5m followed by R1m monthly “donations” was the price, he claimed.