Former VBS Mutual Bank CFO Philip Truter has been sentenced to 10 years in prison for financial crimes committed when the bank was looted of over R2bn.

Of the 10 years, seven is direct imprisonment while three years has been suspended for five years.

Truter also entered into a plea agreement with the state.

This agreement will see Truter pleading guilty to some of the charges he faces and turn state witness.

Truter faced charges of corruption, fraud, racketeering, and money laundering, among others, and he pleaded guilty to some of them. His charges related to the looting of at least R2bn at the VBS Bank in which he allegedly received over R5m in kickbacks.

Truter was scheduled to appear on Thursday, alongside his seven co-accused – former VBS chairperson Tshifhiwa Calvin Matodzi, CEO Andile Ramavhunga, former treasurer Phophi Mukhodobwane, former non-executive board members Ernest Nesane and Paul Magula, the former CFO of the SA Police Service, Phalaphala Avhashoni Ramikosi, and former KPMG engagement partner, Sipho Malaba.

He appeared alone on Wednesday where his case was immediately heard at the Specialised Commercial Crimes Court sitting in Palm Ridge.

In his plea agreement with the state, Truter pleaded guilty to:

• accounting fraud for falsely inflating assets owned by VBS Bank among others;
• corruption in that he accepted gratification of about R5m;
• fraud;
• money laundering in that money was paid to companies as part of proceeds from the money stolen from the bank to avoid prosecution for corruption; and
• failure to submit his 2018 income tax returns to Sars.

This is a developing story.