VietNamNet Bridge – The HCM City People’s Procuracy on Friday sought life imprisonment for Tran Phuong Binh, former general director and vice chairman of Dong A Bank for “abusing power to appropriate assets,” and another 20 years for “lack of responsibility, causing serious consequences”.

Defendants at the trial on losses incurred by Dong A Bank in HCM City on December 7. — VNA/VNS Photo by Thanh Chung

It also wanted Binh to pay the bank VND3.568 trillion (US$153 million) in compensation.

Binh is one of 26 defendants in the ongoing trial, with Phan Van Anh Vu, aka Vu Nhom, former chairman of Da Nang-based Bac Nam 79 Construction Joint-Stock Co, and Nguyen Thi Kim Xuyen, the lender’s former deputy general director, being among the others.

They also face charges of causing losses by “intentionally violating regulations on economic management, causing serious consequences.”

The prosecutors have sought 15-17 years’ imprisonment for Vu.

Vu was sentenced to nine years in prison for “deliberately disclosing state secrets” by the Ha Noi People’s Court last July.

The indictment has sought 30 years for Xuyen.

The procuracy has sought an investigation of certain State Bank of Viet Nam officials and groups for approving Binh’s proposal to increase Dong A Bank’s charter capital from VND5 trillion ($220.3 million) to VND6 trillion ($264.3 million) in 2014, but failing to discover he had used fake receipts.

Binh, who was also chairman of the bank’s credit council, was discovered to own 10.25 per cent of the bank’s charter capital by the investigators, while his family members held a further 7.7 per cent.

He was also in charge of the bank’s budget and investment division at the time.

According to the indictment, Binh directed all activities of funding and investment at the bank and abused power to appropriate property, causing a loss of VND3.6 trillion (US$160 million).

The indictment said that the bank’s accumulated losses were VND31 trillion ($1.37 billion) and equity capital was a negative VND25.5 trillion ($1.12 billion), while total assets at the time of the violations were only VND47 trillion ($2.1 billion). Binh’s violations were responsible for the losses, the indictment said.

Binh is charged with “abusing power to appropriate property” for directing DAB officers to spend VND1.16 trillion ($51.1 million) to acquire the bank’s shares.

He also changed VND294 billion to $13.9 million without proper documentation to later use for personal purposes, and used an additional VND309 billion ($13.6 million) for personal purposes.

Binh is 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 personal purposes.

He also illegally directed spending in gold and foreign currency, causing a loss of VND1.6 trillion ($70.5 million).

The investigators concluded that Bình caused a loss of VND200 billion ($8.8 million) for DAB while raising the bank’s charter.

During the investigation, Bình returned VND4 billion ($180.000) to authorised agencies.

Another defendant, Xuyen, used virtual companies and individuals to help Binh withdraw VND467 billion ($20.6 million) for the acquisition of DAB shares, according to the indictment.

She also appropriated VND40 billion ($1.8 million) from the bank.

She is charged with “abusing power to appropriate property” and “intentionally violating regulations on economic management.”

In addition, Vu was complicit in Binh’s crimes by buying 60 million DAB shares with total value of VND600 billion ($26.4 million), the indictment said.

Vu mortgaged his land in Da Nang City to collect VND400 billion ($17.6 million) from the bank, and then used this to purchase the bank’s stocks.

The remaining amount was paid by the bank per Binh’s instructions, after which Vu signed fake documents showing that he had paid VND200 billion ($8.8 million) to the bank.

This was the fourth criminal case in which Vu has been involved since his capture on the run in Singapore in January.

During the investigation, Vu returned VND173 billion ($7.7 million).

Sixteen the bank’s officers who followed Binh and Xuyen’s orders face charges of deliberate breaches of law, causing serious consequences.

The other defendants include six borrowers from the bank who were allegedly involved in the case.

The trial began on November 28 and will run until December 25. 

Source: VNS