Thursday,  Sep 20, 2018,08:17 (GMT+7) 0 0
Former PVN chairman gets 18-year jail term
The Saigon Times Daily
Friday,  Mar 30, 2018,19:18 (GMT+7)

Former PVN chairman gets 18-year jail term

The Saigon Times Daily

HCMC – The Hanoi People’s Court on March 29 handed down a jail term of 18 years to Dinh La Thang, former board chairman of Vietnam National Oil and Gas Group (PVN), and required him to pay VND600 billion for his role in a huge money loss racked up by PVN.

In a separate corruption case early this year, Thang was sentenced to 13 years in prison.

Local media said on March 29 that the Hanoi People’s Court found Thang and six other defendants guilty of PVN’s lost investment of VND800 billion in OceanBank. Thang was charged with intentionally violating State regulations on economic management causing serious consequences

The defendants must repay VND800 billion to PVN, with Thang alone responsible for VND600 billion.

According to the court’s verdict, Thang as PVN board chairman in 2008 was involved in the signing of an agreement on capital contribution to the bank with Ha Van Tham, then chairman of OceanBank, without the board’s prior approval.

In addition, PVN did not observe the Ministry of Finance’s relevant requirements. Under Thang’s instruction, the defendants three times made capital contributions totaling VND800 billion.

The other defendants are Vu Khanh Truong, Nguyen Thanh Liem, Nguyen Xuan Thang and Phan Dinh Duc, who were on PVN’s council of members, former deputy general director Nguyen Xuan Son and former chief accountant Ninh Van Quynh.

Under the law on credit institutions which went into force in January 1, 2011, a corporate shareholder owns no more than 15% of a bank’s chartered capital.

Thang did not divest PVN’s capital from OceanBank to scale down the stake but assigned Vu Thi Thanh Huong to represent the company’s 20% stake in the bank.

As a consequence, VND800 billion which PVN invested in OceanBank was lost when the ailing bank was taken over by the central bank at zero Vietnam dong. Thang rejected the allegations during the trial.

A central bank report said OceanBank was making losses when it received PVN’s investment. Annual financial reports of the bank were inaccurate.

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