Investigators with the Ministry of Public Security (MPS) on December 12 searched the  residence of Tran Bac Ha, former chairman of the Bank for Investment and Development of Vietnam (BIDV), and his family’s memorial area, both located in the south-central coastal province of Binh Dinh.

Tran Bac Ha, former chairman of the Bank for Investment and Development of Vietnam (BIDV)

Ha, 61, has been in police custody since late last month for his alleged violations of lending regulations.

A source told Lao Dong newspaper that the Investigative Police Agency at the ministry had also asked the province’s competent agencies to freeze the relevant assets of the former banking boss, such as plots of land owned by his family members.

On November 29, the Investigative Police Agency decided to detain and prosecute Ha for his alleged violations of lending regulations.

At a June meeting held in Hanoi, the Inspection Commission of the Party Central Committee removed the former banking leader from the Party, where he had served as secretary of the BIDV’s Party unit.

Ha allegedly violated regulations on lending, financial warranties, investment and debt management. His violations were deemed extremely serious.

In May 2013, Pham Cong Danh, former chairman of Vietnam Construction Bank, currently known as Construction Bank, who is serving a 20-year sentence on charges of economic mismanagement, and his subordinates met Tran Luc Lang and Doan Anh Sang, then-deputy general directors of BIDV, to ask for loans.

Danh later falsified documents in the names of 12 companies owned by him and others to obtain loans from BIDV. He used VNCB’s capital, which was deposited at BIDV, as the collateral for these loans.

On October 2013, the then-chairman of BIDV Ha approved 12 loans totaling VND4.7 trillion for these companies.

Ha was charged with helping Danh to illegally withdraw money belonging to VNCB, causing losses of VND2.55 trillion for the State budget.

SGT