Thursday,  Sep 20, 2018,07:04 (GMT+7) 0 0
Prosecution proposed against former DongA Bank boss
The Saigon Times Daily
Thursday,  Apr 5, 2018,19:21 (GMT+7)

Prosecution proposed against former DongA Bank boss

The Saigon Times Daily

HCMC – The Ministry of Public Security has proposed formal charges against Tran Phuong Binh, former general director of DongA Bank Commercial Joint Stock Bank, for misappropriation of the bank’s assets, according to local news reports.

Binh was accused of deliberately violating State regulations on economic management and abusing trust for misappropriation of assets, causing losses of more than VND3.4 trillion (US$149 million).

Investigators found that Binh, who used to hold the posts of vice chairman of DongA Bank and chairman of the bank’s credit council, owned 10.25% of DongA Bank’s chartered capital and his family members 7.7%. Binh was in charge of the bank’s budget and investments at the time.

Binh’s violations caused accumulated losses of VND31 trillion for the bank as of the end of 2015.

According to Thanh Nien newspaper, Binh was also found to create favorable conditions, even direct his staff to falsify documents, to help Phan Van Anh Vu, alias Vu Nhom, to successfully buy 63 million shares of DongA Bank. Vu was later arrested in Hanoi for allegedly disclosing State secrets.

In 2013, DongA Bank incurred huge losses, so Binh had plans to raise the bank’s chartered capital from VND5 trillion to VND6 trillion and sell 60 million DongA Bank shares at VND600 billion to Vu Nhom.

To have enough money for the shares, Vu used 220 lots of land in Danang City as collateral to borrow VND400 billion from DongA Bank. Binh directed his staff to falsify documents to make it possible for Vu Nhom to borrow the remaining VND200 billion.

However, the capital increase plan faltered, so Binh ordered his subordinates to return VND600 billion to Vu Nhom who then used VND500 billion of this very amount to buy 50 million shares of DongA Bank.

In August 2015, Vu also acquired an additional 13 million shares of the bank at VND136 billion but he paid only VND46 billion.

Thus, Binh and Vu caused losses of VND200 billion for DongA Bank.

Besides, 20 others also face prosecution, including former DongA Bank deputy general directors Nguyen Thi Ngoc Van and Nguyen Thi Kim Xuyen, and former directors of DongA Bank’s transaction offices.

Particularly, Nguyen Hong Anh, a former HCMC police officer, borrowed 2,000 taels of gold from the bank and then caused losses of over VND53 billion. A tael equals to 1.2 troy ounces.

Of 21 defendants, eight people are now under house arrest while 13 others have been detained.

In related news, Nguyen Hoang Minh, deputy director of HCMC branch of the State Bank of Vietnam (SAV), said the prosecution against Binh will not affect the operation of DongA Bank as the central bank has sent the Government a plan to restructure the bank. DongA Bank will not file for bankruptcy or be acquired at zero Vietnam dong, he said.

After Binh and former executives of DongA Bank were detained, SBV has sent competent officials to the bank to oversee its day-to-day operations. Its performance has improved and customers still have confidence in it.

SBV will take measures to ensure the smooth operation of DongA Bank and safeguard the interests of customers and partners in line with the law. The central bank also pledged to completely restructure the bank so that it will operate safely and efficiently.

Share with your friends:         
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.