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Trust Bank case defendants call for trial appeal

Update: October, 23/2018 - 07:00
Defendants shown at the last trial. — VNA/VNS Photo
Viet Nam News

HCM CITY — HCM City People’s Supreme Court on Monday heard the trial appeal for the economic mismanagement and misappropriation case at Trust Bank leading to the loss of VNĐ6.3 trillion (US$271 million).

Previously, on May 31, 28 former officials of Trust Bank (Đại Tín Bank – now known as the Việt Nam Construction Bank) were sentenced to between three and 30 years in prison by the city People’s Supreme Court on charges of “abusing trust to appropriate property” and “intentionally violating State regulations on economic management and causing serious consequences” after a three-week trial.

11 of the 28 defendants appealed the court’s verdict.

The key defendant Hứa Thị Phấn, former senior advisor of the management board of Trust Bank, and former chairwoman of the management board of Phú Mỹ Investment and Development JSC, appeals the entirety of the first-instance judgments. In her letter of appeal, Phấn said that the first-instance judgments adjudicated unfairly for her and did not consider all evidences. Phấn received the highest sentence of 30 years in jail.

In addition, 15 of 214 people involved in the case called for a trial appeal. The Việt Nam Construction Bank (CB Bank) asked the court to reconsider civil responsibilities regarding the credit loans between CB Bank and Phương Trang Company, as well as the legality of the sale of the house at 5 Phạm Ngọc Thạch Street in Ward 6, District 3, HCM City.

According to the first-instance verdict, taking advantage of her majority shareholder status (at the time she controlled 84.92 per cent of Trust Bank’s charter capital), Hứa Thị Phấn took over management of the bank.

She wrongfully inflated the value of her house on Phạm Ngọc Thạch Street to sell it to Trust Bank, leading to financial loss of over VNĐ1.1 trillion ($48.5 million). She was also alleged to have violated the accounting law, causing a loss of over VNĐ5.2 trillion ($223.6 million) to the bank.

Phấn was asked to pay compensation of more than VNĐ 6.3 trillion ($271 million) to CB Bank. The judge panel asked Phương Trang company and other enterprises who co-operated with Phương Trang company to pay back VNĐ6.4 trillion ($280 million) to the bank. — VNS

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