VietNamNet Bridge – Seventeen former leaders of Mekong Housing Bank (MHB) and Mekong Housing Bank Securities Company (MHBS)-including former bank management board chairman Huynh Nam Dung-will be prosecuted for abuse of power and irresponsibility that led to serious consequences.

Former chairman of Mekong Housing Bank’s management board Huynh Nam Dung will be prosecuted for abusing power, mismanaging State’s asset.

The Public Security Ministry’s Investigation Police Department announced on Monday (Feb 6), day that they had finished investigations concerning power abuse at MHB, MHBS and other companies.

The investigation results show that Dung – the top leader responsible for managing State-owned capital at the bank – abused power, violated laws and caused losses worth nearly VND299 billion (US$13.22 million) to State assets.

Others involved include former director general Nguyen Phuoc Hoa, former vice director general Bui Thanh Hung, former chief accountant Nguyen Van Thanh, former MHBS General Director Lu Thi Thanh Binh and former MHBS vice general director Dang Van Hoa.

According to investigation results, before merging with the Bank for Investment and Development of Viet Nam (BIDV) in May 2015, the MHS founded had charter capital of VND3.369 trillion ($149 million) with State capital making up 91.26 per cent.

In December 2006, MHB established MHBS, and the bank contributed 60 per cent of the charter capital of the securities company.

In November 2010, MHB’s internal auditing found that the MHBS suffered losses continuously – VND36.6 billion in 2008, VNĐ41.5 billion in 2009 and VND13 billion in the first nine months of 2010.

Dung, instead of seeking solutions to address the MHBS’s problems, decided to transfer capital from MHB to MHBS through investing Government’s bonds. The MHBS opened accounts at MHB’s branches and earned money thanks to interest rate difference.

Leaders of MHB and MHBS also are being accused of withdrawing money from the companies’ bank account to spend for personal purposes.

VNS