VietNamNet Bridge - Related to the arrest of mogul Nguyen Duc Kien, investigators have identified a number of former senior leaders of the Asia Commercial Bank (ACB) who deliberately violated the state provisions on economic management.

Mogul Kien charged with swindling
What tactics Kien used to do illegal business?
Three Vietnamese big guys arrested within 20 days

Nguyen Duc Kien.

According to the investigating agency, from January 5, 2010 to November 2011, ACB commissioned its employees to deposit more than VND36.3 trillion ($1.72 billion) at an interest rate of 11.2 to 27 percent per year and more than $71 million, at an interest rate of 3 -6 percent per year at 29 banks across the country. ACB raised more than VND1.63 trillion ($81.5 million) and more than $1.3 million of interest from these deposits.

Of these, ACB deposited money in 22 out of 29 banks with the interest rates in the contracts from 11.2 to 14 percent per year and non-contractual interest rates from 0.4 to 5 percent per year. This behavior violated the Law on Credit Institutions and the Decision 16 of the State Bank of Vietnam on interest rate mechanism in Vietnam dong. Initially, the investigating agency determined the non-contractual interest money of more than VND247 billion ($12.3 million).

In this case, the investigating agency has prosecuted six defendants, including Mr. Nguyen Duc Kien; Mr. Tran Xuan Gia, former Chairman of ACB; Mr. Pham Trung Cang, Mr. Le Vu Ky, Mr. Trinh Kim Quang - former vice presidents; and Mr. Ly Xuan Hai – former CEO of ACB for willfully violating the state provisions on economic management, causing serious consequences.

According to the investigating body, the acts of six defendants caused particularly large consequences, affecting monetary security, destabilizing the monetary policy of the Government, earning illicit profits for ACB and damaging 22 other banks, and directly causing damage to the ACB of nearly VND719 billion ($35.4 million), which was appropriated by Huynh Thi Huyen Nhu.

Investigation of the $200 million fraud finalizes

According to the findings, in 2007 Huynh Thi Huyen Nhyu, an employee of the HCM City branch of Vietinbank, borrowed over VND200 billion ($10 millin) of many banks, organizations and many individuals at high interest rates to invest in real estate business.

After borrowing a lot of money at high interest rates, Nhu incurred losses. In 2010, creditors continuously demanded money from Nhu.

In this situation, Nhu took advantage of the banking proficiency and her position as the chief of the Dien Bien Phu transaction bureau of Vietinbank to perform offense. The investigating agency determined that Nhu appropriated up to nearly VND4 trillion ($200 million).

Related to the case, the investigating agency determined that from May 2010 to November 2011, Nguyen Duc Kien (former vice president of the founding council of ACB) directed the management board of ACB to trust its employees to deposit money at other credit institutions.

In particular, from late June to the end of September 2011, ACB commissioned 19 employees to deposit nearly VND719 billion ($36.4 million) at the Nha Be branch and HCM City branch of Vietinbank, with an interest rate in the contract of 14 percent per year and non-contractual interest rates from VND3.7 to 13 percent a year.

The investigating agency determined this behavior of violating Article 106 of the Law on Credit Institutions and Circular 02 of the State Bank of Vietnam on the interest rate cap. The entire amount of the deposit was appropriated by Huynh Thi Huyen Nhu.

Besides ACB, the investigating agency also identified that Huynh Thi Huyen Nhu borrowed loans and caused serious damage to three major banks, including the Maritime Commercial Joint Stock Bank (MSB), Tien Phong Commercial Joint Stock Bank (TPB), and the Nam Viet Commercial JS Bank.

For the acts of Nguyen Duc Kien and the remaining defendants, the investigating agency said that they are involved in the illegal business, fraudulent appropriation of property occurring at the ACB Ha Noi Investment JSC, the Asia Financial Investment Co., Ltd. B&B Trade and Investment Corporation and ACB.

Therefore, the investigating agency decided to separate the criminal case for the acts of the six defendants to combine in the case "Nguyen Duc Kien committed illegal business." The case is under further investigation.

Translated by Na Son
From Tuoi Tre