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Hua Thi Phan must still pay over VND16 trillion in compensation
The Saigon Times Daily
Friday,  Nov 2, 2018,22:04 (GMT+7)

Hua Thi Phan must still pay over VND16 trillion in compensation

The Saigon Times Daily

Hua Thi Phan is summoned to the court during the trial of Pham Cong Danh, former chairman at Vietnam Construction Bank – PHOTO: VNA

HCMC – The HCMC Superior People’s Court today, November 2, threw out the appeal by Hua Thi Phan, former senior advisor of TrustBank, currently known as Construction Bank, and ordered her to pay the bank more than VND16.7 trillion (US$720 million) in damages.

Phan, 71, who was also chairwoman of Phu My Investment and Development JSC, together with 27 accomplices, was found guilty of causing financial losses of over VND6.3 trillion (US$273 million) for the bank.

They were held on charges of abusing trust to misappropriate assets and deliberately violating State regulations on economic management, leading to serious consequences, reported Thanh Nien newspaper.

The judge cited the Law on Credit Organizations as saying that a single shareholder is not allowed to hold over 20% of charter capital. However, Phan abused her power as the owner of roughly 85% of the bank’s charter capital to take over the management of all TrustBank activities.

As the mastermind, Phan instructed her subordinates to commit unlawful acts for her own gain. They inflated the value of her house at 5 Pham Ngoc Thach Street in HCMC’s District 3 from VND154 billion to a whopping VND1.26 trillion before selling it to TrustBank. This caused the bank a hefty loss of over VND1.1 trillion.

Besides this, they were alleged to have drawn up false payment papers, which exaggerated the outstanding loans for Phuong Trang Investment JSC. Consequently, their act led to a loss of over VND5.2 trillion for the bank.

Therefore, the appeals court rejected her appeal and decided to uphold the entire first-instance verdict against her. In addition to a maximum jail term of 30 years, she was forced to pay more than VND16.7 trillion in compensation, which covers the lost VND6.3 trillion in combined principal amounts, and the interest lost on this amount.

The court also dismissed the appeals lodged by 11 other defendants and 16 individuals and organizations with rights and obligations relevant to the high-profile case.

Earlier, Construction Bank proposed the higher court review the civil liability for the loans between the bank and Phuong Trang Investment JSC, in which the bank demanded that this company pay roughly VND27 trillion in principal and interest to the bank.

The judge said it had taken the evidence into careful consideration and determined that the company had only received loans worth over VND3.9 trillion in total.

According to the HCMC Superior People’s Procuracy, Phan was aware that Phuong Trang was seeking investment capital to expand its business activities. She then forced the company to sign 82 loan applications in advance, as well as provide a number of bonds and all of its assets as collateral to borrow VND9 trillion from the bank.

Therefore, the first instance verdict against Phuong Trang was rightful – the company was merely held accountable for paying the actual amounts of the original loans and their interest, totaling VND6.4 trillion. Assets with a value proportional to the loan amounts are being seized to guarantee that the payment obligations are met.

Because of her frail health, Phan was not present during the entire court of appeals, which opened on October 22.

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