The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) on August 1 delivered a press release on criminal proceedings against its former executives Tram Be and Phan Huy Khang.

Transaction at Sacombank

Tram Be is the former Vice Chairman of the board of directors of Sacombank and Chairman of the bank’s credit council, while Phan Huy Khang is an ex-member of the credit council and former General Director of the bank.

They are accused of intentionally violating State regulations on economic management and causing serious consequences relating to a case involving Pham Cong Danh, former Chairman of the board of directors at the Vietnam Construction Joint Stock Commercial Bank (VNCB) and former Chairman of the members’ council and General Director of the Thien Thanh Group Co. Ltd.

Sacombank said according to a State Bank of Vietnam (SBV) inspection, Sacombank did not incur losses through lending to six companies Danh found to have linked with in the case, adding that the bank recovered the capital and interest from the loans by April 2014. 

Tram Be has not had a management position at the bank since February 23, 2017, while Phan Huy Khang held no position at the bank since July 3, 2017, according to the bank. 

On June 30, 2017, Sacombank’s annual shareholders’ meeting for the 2016-2017 fiscal year elected the board of directors and supervisory board for 2017-2021 with Duong Cong Minh elected as Chairman of the board of directors.

The press release said Minh is leading Sacombank through a banking restructuring scheme approved by the SBV with several major plans, such as reshuffling apparatus and personnel, improving business operations, handling and recovering bad debts, managing expenses and reforming business procedures and ensuring safety and sustainable development.

Sacombank said it is operating normally and recording stable growth. In the first seven months of the year, the bank mobilised more than 326.6 trillion VND (14.37 billion USD), a year-on-year rise of 8 percent, and lent 218.5 trillion VND (9.61 billion USD), a yearly increase of 12.2 percent. Its accumulated profits in the first seven months reached 586 billion VND (25.78 million USD), surpassing the yearly target by 29 percent.

The Police Department for Investigation of Economic and Corruption-related Crimes on August 1 launched criminal proceedings against and detained Tram Be and Phan Huy Khang.

Allegedly, Tram Be colluded with Pham Cong Danh and accomplices in using money from Sacombank to guarantee and pay off the debts of six companies set up by Danh, causing losses of more than 1.8 trillion VND (79.25 million USD) for VNCB.

In April 2013, Danh asked Tram Be to lend him money to pay off debts the six companies had incurred. Tram Be agreed to loan Danh 1.8 trillion VND from Sacombank, with VNCB’s deposits in Sacombank used as collateral.

Later, Tram Be took Danh to meet Phan Huy Khang to complete loan procedures.

On April 26, 2013, 1.8 trillion VND was transferred to Danh’s account. A day later, he used 1.7 trillion VND to pay off debts to the Bank for Investment and Development of Vietnam (BIDV). Danh kept the remaining money in his personal account.

As Danh’s companies failed to pay off their debts to Sacombank, Sacombank took 1.8 trillion VND and 35 billion VND in interest from VNCB’s deposits.

On February 24, 2017, the SBV announced that it had terminated Tram Be’s roles at Sacombank.

VNA