Former VBS CFO Phillip Truter's release on parole causes a stir

Former VBS Mutual Bank CFO Phillip Truter's release from prison on parole after serving three years and six months for corruption in the bank's looting saga which left pensioners penniless has caused a stir. 

Truter was sentenced to 10 years, three suspended for five years, in 2020 by the Johannesburg specialised commercial crimes court after being convicted of fraud, money laundering, corruption and racketeering,

Correctional services spokesperson Singabakho Nxumalo said the department followed the law in granting Truter parole.

“Truter was admitted after his conviction and began serving his sentence of seven years. He became eligible for parole after reaching the minimum detention period as per the Correctional Services Act. The parole board approved his release on April 12,” Nxumalo said in an interview with Newzroom Afrika. 

Truter's parole comes under the spotlight after former VBS Mutual Bank chairperson Tshifhiwa Matodzi was sentenced to an effective 15 years in prison by the Pretoria high court after he pleaded guilty to 33 counts including corruption.

Nxumalo said there was a “rigorous” process involved in parole considerations.

“Parole placement is earned. It is built in an inmate's journey towards rehabilitation. When inmates come into our facilities we draw a correctional sentence plan,” he said.

“The plan provides space for assessment reports by our specialists from psychologists, criminologists and social workers. It doesn't mean once you've reached the minimum detention automatically you are placed out. You ought to be considered. So Truter was considered and the parole board deemed he was fit to be placed out.”

Nxumalo said the parole board did not communicate with the pensioners affected by Truter's wrongdoing when deciding on parole. This was due to affected individuals not being listed in the documents handed to correctional services which had VBS Mutual Bank as the victim of his crimes.

He said Truter's release was not without conditions.

“The objective of the department is to correct the wrong and prepare a person for a life post incarceration. So if a person is not ready, the specialist will say so and the parole board will state, at this point, we are not yet ready. You have to make it a point that you do not place a person out there that still carries a risk that this person may reoffend or this person may cause harm to society,” said Nxumalo.

The decision to grant parole to Truter sparked public interest and scrutiny, given the severity of his crimes, with some questioning the timing and conditions of his release. 

The debate continues on social media:

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