The Saigon Joint Stock Commercial Bank (SCB) headquarters in HCM City. — VNS Photo Bồ Xuân Hiệp

According to the Investigation Police Department for Corruption, Smuggling, and Economic Crimes (C03) under the Public Security Ministry, the bribes were taken in exchange for overlooking the “extreme violations” that were being committed by the lender.

The C03 has recommended charging Đỗ Thị Nhàn, former head of the SBV’s inspection and supervision department, after it was discovered that she received bribes worth $5.2 million from SCB.

Trương Mỹ Lan, chairwoman of Vạn Thịnh Phát Group and a major shareholder of SCB, is accused of siphoning over VNĐ1 quadrillion (US$44 billion) worth of public deposits from the bank over a period of ten years.

In addition to Nhàn, 16 other central bank inspectors have also been recommended for charges related to abusing their position and authority while performing their official duties.

Seven other inspectors will not be charged as they have cooperated with investigators and returned the money they had unlawfully accepted, according to C03.

According to C03, Nhàn, as the head investigator, discovered the fraudulent activities in August 2017 but instead of taking action, falsified reports which allowed SCB to continue operating normally.

This led to severe violations and Nhàn even instructed her subordinates not to mention VNĐ38 trillion worth of bad debt in their reports but rather falsify all key financial indicators of the bank.

The private lender was put under “special control” by SBV, after facing a run in October last year, in an effort to prevent an industry-wide contagion.

Formerly known as Saigon One Tower, the IFC One Saigon in 2021 was acquired by Viva Land, a subsidiary of Vạn Thịnh Phát Group. Construction was briefly resumed after years of delay but was halted again following the arrest of Trương Mỹ Lan in October of last year. — VNS Photo Bồ Xuân Hiệp

Earlier, the C03 reported that Trương Mỹ Lan, 66, is facing charges of bribery, violating banking regulations, and embezzlement, which caused SCB to incur a total loss of VNĐ500 trillion.

In addition, 85 other individuals are also facing charges related to embezzlement, violation of banking regulations, bribery, abuse of power, negligence causing serious consequences, and misappropriation of property.

Prime Minister Phạm Minh Chính at a meeting last year blamed the central bank for its weak management that caused the unprecedented wrongdoings at SCB.

According to the police investigation, although Lan does not hold any positions at SCB, she has control over the bank as she has held a controlling stake (from 85 to 91.5 per cent) since a merger in 2012.

The C03 stated that with her controlling shares, and with close relatives of hers appointed to key leadership positions at SCB, all activities of the bank “basically served” Lan’s purposes.

She is accused of utilising SCB to raise capital, then directing individuals at SCB and Vạn Thịnh Phát Group to take out loans to withdraw money.

The construction of a building near Bến Thành Market, which is believed to be owned by Viva Land property developer under Vạn Thịnh Phát Group, was halted at the end of last year following the arrest of Trương Mỹ Lan. — VNS Photo Bồ Xuân Hiệp

​In October last year, Lan and other individuals were arrested for alleged fraud related to the issuance and trading of bonds worth VNĐ30.1 trillion ($1.22 billion). Most of the buyers of the bond packages purchased the bonds at SCB.

Trương Mỹ Lan is known as a prominent Chinese-Vietnamese billionaire in Việt Nam’s business community.

The amount that the chairwoman is accused of misappropriating is equivalent to 6 per cent of Việt Nam’s GDP, local media reported. — VNS