Viet Nam News
HÀ NỘI — Seven former officials of Đại Tín Bank (Trust Bank), including former chairman of its board of directors and general director, were arrested and put under temporary detention on Tuesday.
Members of the bank’s credit council, former chairman of board of directors Hoàng Văn Toàn and the bank’s former general director Trần Sơn Nam have been charged with “deliberately violating State regulations on economic management, causing severe consequences”.
The Investigation Police Bureau for Economic Management Order Offences (C46) has shifted the defendants to Hà Nội for further investigations.
The council had approved the credits of two documents to borrow VNĐ650 billion (US$28.9 million) from Đại Hoàng Phương Company and Thịnh Quốc Company.
The bank accepted as deposits a land use right and land use right certificate for a land lot in a multi-storey commercial and service complex in Đà Nẵng City’s Chi Lăng stadium in Hải Châu District.
The bank incurred a loss of more than VNĐ470 billion ($20.9 million) because of the two loans.
After the State Bank of Việt Nam gave its nod to Trust Bank’s restructuring plan, Phạm Công Danh took over the small, debt-ridden bank and renamed it Việt Nam Construction Bank (VNCB).
However, Danh abused his post as chairman of VNCB’s board of directors and chairman of Thiên Thanh Group’s board of members, getting his staff in the group and the bank to violate rules, which resulted in the Government losing around VNĐ9 trillion ($403.5 million), the largest economic loss caused by corruption.
In September 2016, Danh was accused of “deliberately violating State regulations on economic management, causing severe consequences” and “violating lending regulations of credit institutions” and convicted.
However, Danh and his accomplices have appealed against the court’s judgement, asking for the penalties to be reduced.
The appeal hearing started in HCM City on December 27 and is scheduled to close on January 25. — VNS