The Police Department investigating Economic and Corruption Crimes (C46) yesterday raided the residences and offices of 14 people, mostly ex-employees of the now defunct Vietnam Construction Bank (known as TrustBank prior to 2013).

Hua Thi Phan, the bank’s former majority shareholder. — Photo phununews.vn

The raids followed the launch of criminal proceedings against them on the grounds of serious economic mismanagement and violations in lending operations, as well as abuse of trust to appropriate properties.

Four people were detained yesterday, while the remaining have been placed under house arrest.

The 14 are accused of helping Hua Thi Phan – the bank’s former majority shareholder – to purchase several real estate properties against regulations, causing losses amounting to VNĐ4.9 trillion for the bank.

Phan, who used to own 84.92 per cent of TrustBank’s shares before transferring ownership to another accused Pham Cong Danh, was indicted by the Supreme People’s Procuracy last July.

With Danh at the helm, the VNCB reportedly incurred losses of VNĐ9 trillion. 

VNS