The Supreme People’s Procuracy has just returned the documents of the case of “abusing trust to appropriate property” and “intentionally violating regulations on economic management causing serious consequences” at Dong A Bank (DAB) to investigate violations causing a loss of VND3.4 trillion ($150 million), and the involvement of Phan Van Anh Vu.

The case of billion-dollar appropriation at Dong A Bank continues to be investigated

Earlier, the investigation agency concluded that Tran Phuong Binh (former general director of Dong A Bank) directed all activities of funding and investment at Dong A Bank and abused customers’ trust to appropriate property, causing a loss of VND3.405 trillion ($150 million).

The conclusions pointed out that Dong A Bank’s accumulated losses were VND31.075 trillion ($1.37 billion) and equity capital was negative VND25.451 trillion ($1.12 billion), while total assets at the time of the violations were only VND47 trillion ($2.1 billion), for which Binh’s violations were responsible.

Binh was found guilty on the charge of “abusing trust to appropriate property” as he directed DAB officers to spend VND1.16 trillion ($51.1 billion) to acquire the bank's shares, exchange VND294 billion into $13.9 million without proper documentation to later use for personal purposes and using an additional VND309 billion ($13.6 million), also for personal purposes.

Binh was also charged with “intentionally violating regulations on economic management, causing serious consequences” for his directions to spend VND467 billion ($20.6 million) for interest payments, VND85 billion ($3.75 million) for loan settlements, and VND49 billion ($2.16 million) for other personal purposes. He also directed to spend on gold and foreign currency illegally, causing a loss of VND1.6 trillion ($70.5 million).

Nguyen Thi Kim Xuyen (deputy general director of Dong A Bank) used virtual companies and individuals to support Binh to withdraw VND467 billion ($20.6 million) for the acquisition of DAB shares. She also appropriated VND40 billion ($1.8 million) from the bank. She is charged with “abusing trust to appropriate property” and “intentionally violating regulations on economic management.”

During the investigation, Tran Phuong Binh has returned VND4 billion ($0.18 million).

The investigation conclusions also stated that Binh caused the loss of VND200 billion ($8.8 million) for DAB while raising the bank's charter capital from VND5 trillion ($220.3 million) to VND6 trillion ($264.3 million). Phan Van Anh Vu (Vu "Nhom," former chairman of Bac Nam 79 Construction JSC) was complicit in his crimes through buying 60 million DAB shares with the total value of VND600 billion ($26.4 million).

Vu “Nhom” mortgaged his land holding in Danang city to collect VND400 billion ($17.6 million) from Dong A Bank, then used this to purchase DAB stocks. The remaining amount was paid by the bank as per Binh’s instructions, after which Vu signed fake documents showing that he had already paid the VND200 billion ($8.8 million) to Dong A Bank. Thereby, Vu “Nhom” has to return VND200 billion ($8.8 million) to DAB and relevant agencies will investigate and prosecute him later.

In this case, on April 2, the investigation agency proposed to prosecute 21 defendants including:

Tran Phuong Binh, former general director, vice chairman of the management board of Dong A Bank;

Nguyen Thi Kim Xuyen, former deputy general director, member of the management board;

Nguyen Thi Ngoc Van, former deputy general director;

Nguyen Duc Vinh, former head of treasury at the headquarters;

As well as 17 leaders and treasurers of different DAB branches.

Earlier, on January 4, the Ministry of Public Security took defendant Phan Van Anh Vu into custody after he was deported from Singapore. On December 21, 2017, MoPS issued an arrest warrant for Phan Van Anh Vu because he was accused of "Deliberately disclosing state secrets; appropriating, trading in and/or destroying state secret documents," according to Article 263 of the 1999 Penal Code.

VIR