The investigating police have just issued a decision to prosecute Đặng Thanh Bình, former deputy governor of the State Bank of Việt Nam. — VNA/VNS Photo

HÀ NỘI - The investigating police have just issued a decision to prosecute Đặng Thanh Bình, former deputy governor of the State Bank of Việt Nam.

Đặng Thanh Bình was prosecuted by investigators from the Ministry of Public Security today on the charge of lacking responsibility, causing serious consequences in a case relating to Phạm Công Danh, former chairman of the Construction Bank.

Last year, Danh was found guilty by the Ho Chi Minh City People’s Court of intentional wrongdoings and violations of lending rules and sentenced to 30 years in jail.

Danh, the ex-Chairman of the Việt Nam Construction Bank (VNCB) Board of Directors, Chairman of the Board of Members and General Director of the Thiên Thanh Group, was found guilty by the HCM City People’s Court for illegally withdrawing more than VNĐ9 trillion (US$404 million), the biggest such loss ever uncovered in the country’s banking sector.

Bình was prosecuted for his involvement in the "grand scheme" of Phạm Công Danh and his accomplices. He was put under house arrest.

Bình has 25 years of experience in the banking industry. In 1994, he started as Director of the Department of Financial Institutions, and after three years became Director of the Legal Department of the State Bank. In 2002, Bình was appointed the Director of Personnel Department of the State Bank. In 2005, together with Nguyễn Đồng Tiến, he was appointed Deputy Governor of the State Bank.

According to the decision on the assignment of the work, Bình helped the Governor deal with banking inspection and supervision, anti-money laundering, credit information, legal work, the operation of people’s credit funds, deposit insurance activities, and the operation of associations in the banking industry. He was directly in charge of the Banking Inspection and Supervision Agency, Legal Department, and Credit Information Center.

Bình served as deputy governor of the State Bank of Viêt Nam from 2005 until he retired in August 2015.

On August 28, the Hà Nội People’s Court opened the first hearing in the case of ex-banker Hà Văn Thắm and 50 other defendants for serious violations of State monetary policies.

In one of the biggest economic crime cases in Việt Nam, Thắm – former Chairman of the Board of the Ocean Commercial Joint Stock Bank (OceanBank) – and 50 other former executives and employees of the bank face charges of appropriating assets, breaching loan regulations of credit institutions, abusing power while on duty, and intentionally acting against State regulations on economic management causing serious consequences.

Apart from violations that resulted in losses of nearly VNĐ2 trillion (US$88 million) for the bank, Thắm was found to have directed his subordinates to approve a loan for former Chairman of the Vietnam Construction Bank’s Board Phạm Công Danh without guaranteeing the lending conditions, collateral and proper purposes, causing losses of nearly VNĐ350 billion ($15.3 million) for the Ocean Bank. 

A week ago, government inspectors issued a report on violations that took place at the central bank between 2010 and 2015. The report said the quality of supervision on detecting potential risks was low and the risk assessment on credit institutions was improper.—VNS