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Former VNCB chairman faces another heavy jail term
The Saigon Times Daily
Tuesday,  Jan 23, 2018,23:01 (GMT+7)

Former VNCB chairman faces another heavy jail term

The Saigon Times Daily

Pham Cong Danh, former chairman of Vietnam Construction Bank (VNCB) - PHOTO: VNA

HCMC – The prosecution of HCMC on January 22 proposed sentencing Pham Cong Danh, former chairman of Vietnam Construction Bank (VNCB), to 20 years in jail for his alleged violations that caused losses of VND6 trillion (US$264.1 million), Tuoi Tre newspaper reports.

Danh would face 30 years behind bars if a 30-year jail term handed down in the first phase of the trial is included.

Prosecutors also wanted a prison term of five to six years to be handed down on Tram Be, former vice chairman of Saigon Thuong Tin Commercial Bank (Sacombank) and chairman of the credit board of the bank, 13 to 15 years on Phan Thanh Mai, former general director of VNCB, and 11 to 13 years on Mai Huu Khuong, former director of VNCB’s Saigon branch.

Phan Huy Khang, former Sacombank general director, faces four to five years in prison.

Mai is alleged to have helped Danh withdraw VND6 trillion from VNCB and deposit it in TPBank, BIDV and Sacombank but later Danh allegedly managed to withdraw all the money.

Meanwhile, Tram Be and Khang are alleged to have broken the law as they lent Danh VND1.7 trillion.

As for former executives of Tien Phong Bank (TPBank), prosecutors suggested a jail term of six to seven years for Dang Thi Bich Thuy and Dinh Viet Cuong who used to be in charge of  corporate customers of the bank.

Meanwhile, former executives of the Bank for Investment and Development of Vietnam (BIDV) face a probation term of two to three years, including Hoang Long Ha and Nguyen Ngoc Son who used to serve as former deputy director and director of BIDV’s Gia Dinh branch respectively.

For civil liabilities, prosecutors requested TPBank, BIDV and Sacombank to repay VND6 trillion to VNCB, and Danh and his accomplices to compensate the same amount for VNCB.

In addition, Nguyen Viet Ha, general director of Loc Viet Fund, must give back VND69 billion of illicit earnings, according to prosecutors.

Prosecutors said the case is a typical example for appropriations of assets in the banking system, negatively affecting national currency security and customer confidence in the banking system. Therefore, prosecutors said the case warrants harsh penalties.

In 2013 and 2014, Danh abused his position by instructing his staff in VNCB and Thien Thanh Group, which was established by Danh, to falsify documents in the names of 29 companies to take out loans from TPBank, Sacombank and BIDV.

Danh used the borrowed money for personal purposes and failed to repay them.

The losses of VND6 trillion have not been recovered and the State Bank of Vietnam has acquired VNCB and renamed it as Construction Bank (CBBank).

At the court hearing on January 22, Danh pleaded guilty but the pressure from revising up VNCB’s chartered capital and covering huge customer service costs forced him to borrow.

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