Cape Town - The imprisonment of former Fidentia boss J Arthur Brown was welcomed by the Financial Services Board (FSB) on Monday.
FSB executive officer Dube Tshidi said the Supreme Court of Appeal's decision to overturn Brown's previous sentence acknowledged the seriousness of the fraud he committed.
“The previous sentence simply did not acknowledge the severity of Brown’s crime and the significant impact his actions had on thousands of poor South Africans,” he said.
“This is a great day for South Africa’s justice system and for our citizens. It shows that no matter who you are, if you break the law, you will be prosecuted and sentenced appropriately.”
On Monday, the SCA handed down 15 years' imprisonment on each of the two fraud charges he pleaded guilty to. The sentences would run concurrently.
Western Cape High Court Judge Anton Veldhuizen initially sentenced Brown to a R150,000 fine (R75,000 for each fraud charge) or a suspended jail term.
He pleaded guilty to two fraud charges relating to his handling of investments for the Transport Education and Training Authority and the Mantadia Asset Trust Company between 2002 and 2006. He had originally faced 192 charges.
The National Prosecuting Authority's (NPA) appeal was heard last month.
“It wasn't just about the amount involved. It was about the impact that the commission of the crime had,” NPA spokesman Nathi Mncube said.
According to the judgment, SCA Judge Mahomed Navsa and four other judges found the State had cause for complaining about Veldhuizen's attitude during the trial.
He found Veldhuizen had been antagonistic to the State's case from an early stage and repeatedly intervened to Brown's benefit.
“A judicial officer faced with continuing evidence that trust moneys were being used in the manner described... ought to have been concerned about the propriety of such action rather than repeatedly seeking to excuse it,” the judgment read.
“I agree with counsel for the State that the judge's behaviour reflected in these passages is deserving of censure.”
The court said Brown's personal circumstances were not enough to deviate from the prescribed minimum sentence of 15 years for fraud.
It believed there was little remorse on Brown's part and that he had shown a lack of insight during his testimony into the gravity of his conduct.
Navsa believed a fine tended towards bringing the administration of justice into disrepute.
Cosatu in the Western Cape hoped the sentence would serve as a deterrent to the growing levels of white collar crime. The Congress of SA Trade Unions' provincial secretary Tony Ehrenreich said the sentence should serve as a warning to fund managers who were corrupt and stole from the poor.
The NPA said Brown would have to report to the nearest prison as soon as possible to begin his sentence.
Sapa