VietNamNet Bridge – The Investigation Police Agency of the Ministry of Public Security has suggested prosecuting 36 former officials at the Vietnam Construction Bank (VNCB).

A branch of the Vietnam Construction Bank in HCM City (Source: nld)

The defendants were accused of “deliberately violating State regulations on economic management causing severe consequences”, “violating lending regulations of credit institutions”, and “a lack of responsibility causing serious consequences.”

Their dossiers were sent to the Supreme People’s Procuracy of Vietnam on December 2.

Investigation results reveal that the State Bank of Vietnam (SBV) on September 6, 2012 gave a nod to the VNCB’s restructuring project.

Pham Cong Danh, ex-Chairman of the VNCB Board of Directors, Chairman of the Member Board and General Director of Thien Thanh Group, directed his staff to set up files to withdraw 12 trillion VND (528 million USD) from the VNCB for private purposes.

Danh and his accomplices caused total economic losses of over 9 trillion VND (396 million USD) for the VNCB.

Apart from Thien Thanh Group, Danh also established 29 other companies and asked his relatives or acquaintances to act as these companies’ directors and owners of stocks in the VNCB.

Danh, therefore, was charged of “ deliberately violating State regulations on economic management causing severe consequences” and “violating lending regulations of credit institutions”.

Earlier, the Supreme People’s Court gave sentences of six years in prison to the former bank official for “ abusing trust to appropriate property” in line with Article 135 of the 1985 Penal Code.

The charge was also imposed on Phan Thanh Mai, former Director of the VNCB; Mai Huu Khuong, former Director of the VNCB’s Sai Gon branch; and Hoang Dinh Quyet, former Director of the VNCB’s Lam Giang branch.

Four others will also be prosecuted for “ deliberately violating State regulations on economic management causing severe consequences” and 25 others for “violating lending regulations of credit institutions.”

Under a decision dated March 5, 2015 by SBV Governor Nguyen Van Binh, the SBV has acquired all the equity of the VNCB, with stakes transferred at the price of zero dong per share. The acquisition is compulsory to restore the VNCB's payment abilities in line with the general efforts to create a healthier banking system.

VNCB was established by Trust Bank in May 2013. Trust Bank was operational for 23 years, with charter capital of 3 trillion VND (142.85 million USD). In mid-2014, the SBV appointed new officials to the VNCB after some former top executives at the bank were arrested for allegedly violating state regulations.

Apart from VNCB, other commercial banks that the SBV owned this year were OceanBank and GP Bank. The SBV acquired all three banks this year at zero dong per share due to the banks' ailing performances and failure to meet required charter capital increases.    

Source: VNA