The Supreme People’s Procuracy yesterday released an indictment of Phạm Công Danh, ex-chairman of the members’ board, for “deliberately violating State regulations on economic management causing severe consequences” at the Việt Nam Construction Bank (VNCB).– VNA/VNS Photo Hoàng Hải

HCM City – The Supreme People’s Procuracy yesterday released an indictment of Phạm Công Danh, ex-chairman of the members’ board, for “deliberately violating State regulations on economic management causing severe consequences” at the Việt Nam Construction Bank (VNCB).

According to the indictment, in 2013 and 2014, the 51-year-old ex-chairman of the VNCB members’ board and ex-general director of the Thiên Thanh Group instructed his staff to use 29 companies which had been set up by Danh to take out loans totalling more than VNĐ6.1 trillion ($274 million) at TPBank, Sacombank and BIDV.

The borrowed money was for Danh’s personal use, and he did not repay it.

To guarantee the sum of money, Danh and other defendants used VNCB’s money to deposit in the three banks. VNCB had to pay all of the debt of Danh’s companies to these banks.

Danh had also instructed his staff to allow his companies to borrow money without a mortgage.

Danh organised and sold bonds of the Thiên Thanh Group and Trung Dung Limited Company when financial reports had not been audited and without approval from authorities. These activities caused serious consequences for the bank.

This is the third trial against Danh, who is serving 30 years in jail for wrongdoings at VNCB that incurred losses of more than VNĐ9 trillion (US$405 million) and for other breaches at OceanBank.

Danh and other defendants caused a loss of VNĐ15 trillion ($666 million) for VNCB, which is considered the largest-ever recorded economic loss of any preceding corruption case in the country.

Trầm Bê, Sacombank’s ex-deputy chairman of the board of directors, has been charged with giving approval to Phan Huy Khang, ex-general director of Sacombank, to borrow VNĐ1.8 trillion ($81 million) for Danh’s companies. 

On April 19, 2013, Phan Huy Khang met Phạm Công Danh and Phan Thành Mai, ex-general director of VNCB; Mai Hữu Khương, ex-member of VNCB’s Board of Directors; and Nguyễn Quốc Viễn, ex-head of the control board.

Khang instructed Phan Đình Tuệ, Sacombank’s ex-deputy general director, to set up a fake financial file about the companies which were borrowing money. No checks were made after the loans were given.  

Six days later, Trầm Bê quickly approved the loan, and one day later, money was sent to six of Danh’s companies.

Danh used the money to pay debts for his companies and sent VNĐ166 billion ($7.5 million) to his personal account.

A year later, the six companies could not pay the loan back, and Sacombank took money back from VNCB.

As a result, VNCB lost more than VNĐ1.8 trillion ($81 million).

It is expected that today the court will question defendants in detail about the case.

The court trial is scheduled to last until February 7. — VNS

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