The HCM City People’s Court yesterday began its trial of eight former officials of Đại Tín Bank (Trust Bank) for allegedly “violating regulations on lending activities of credit institutes”. — Photo vov.vn

HCM City – The HCM City People’s Court yesterday began its trial of eight former officials of Đại Tín Bank (Trust Bank) for allegedly “violating regulations on lending activities of credit institutes”.

The defendants include former chairman of the members’ board Hoàng Văn Toàn, general director Trần Sơn Nam, three former deputy general directors Lâm Hồng Trinh, Đỗ Hoàng Linh and Ngô Đức Trí, former head of the bank’s Credit Management Department Hồ Trọng Thắng; former director of the bank’s accounting division Trần Thị Hồng Phương; and former head of the bank’s legal affairs department Phạm Thị Quỳnh Ngân.

However, Đỗ Hoàng Linh has fled and is wanted by police.

This is the second phase of the trial of Phạm Công Danh, former chairman of the Việt Nam Construction Bank’s board of directors and former general director of Thiên Thanh Group.

Prior to 2013, after the State Bank of Việt Nam approved 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 member board, it was found. He allowed his staff in the group and the bank to violate rules, which resulted in the Government losing around VNĐ9 trillion (US$403.5 million), the largest economic loss caused by corruption in the country’s history.

At the trial, the eight defendants were charged with responsibility for the loss of VNĐ471 billion ($21 million).

In particular, the three former deputy general directors approved lending of VNĐ650 billion ($29 million) to two companies of Phạm Công Danh, while the other three wrongly assessed lending documents and disbursed the loans.

These eight former Trust Bank senior officials approved credit from two submitted loan applications to borrow VNĐ650 billion 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 the Chi Lăng Stadium in Đà Nẵng City’s Hải Châu District.

However, site clearance and compensation for the lot had not been completed. There was also no investment licence or approved master plan.  

The bank incurred a loss of more than VNĐ471 billion ($21 million) because of the two loans.

In early 2017, former Trust Bank chairman Hoàng Văn Toàn and former director general Trần Sơn Nam were arrested and investigated for allegedly violating regulations on economic management, leading to serious consequences.

The trial is scheduled to end on May 5. — VNS