Sentences proposed for defendants involved in Trust Bank case
The Ho Chi Minh City People’s Procuracy on May 3 proposed sentences for eight defendants charged with “violating regulations on lending in activities of credit institutions” at Dai Tin Commercial Joint Stock Bank (Trust Bank), the predecessor of the Vietnam Construction Bank (VNCB).
 |
According to the procuracy’s indictment, in late December 2012, former Chairman of the Board of Directors Hoang Van Toan and members of the credit council of the Trust Bank verified and approved the lending of VND370 billion (equivalent to US$16.2 million at present) to Thinh Quoc company and VND280 billion (US$12.3 million) to Dai Hoang Phuong company with an interest rate of 15% in 12 months to purchase over 5,000 sq.m. of land at Chi Lang Stadium in Da Nang city. The two companies were owned by Pham Cong Danh, former Chairman of the VNCB.
When they considered the credit provision, the members of the credit council reportedly did not comply with regulations by accepting loan applications without financial reports and imprecisely assessing clients’ financial strength. In fact, these businesses did not operate and their loan applications were fake.
When considering the provision of credit, Hoang Van Toan and his inferiors based on the verification certificate of the future asset whose value was augmented by many times. In fact, the clearance in the land lot at the Chi Lang Stadium hadn’t been finished while there hadn’t been any certificates or investment activities in this land lot, the indictment said.
Later, the VNCB suffered from a loss of more than VND470 billion (US$20.6 million) because of the two loans.
The procuracy blamed the main role and responsibility in this case on then Chairman Hoang Van Toan and then Director General Tran Son Nam of the Trust Bank. It proposed prison terms of between 6-7 years for Hoang Van Toan and between 5-6 years for Tran Son Nam.
Other defendants were proposed to receive suspended imprisonment sentences of three years.
Meanwhile, Pham Cong Danh was proposed to bear responsibility for compensating for the loss in the case. This compensation responsibility was ruled in the verdicts of the first-instance trial of the HCM City People’s Court on September 9, 2016 and the appeal trial of the HCM City High-level People’s Court on January 24, 2017. Therefore, the defendants in this case were not forced to compensate for the loss.
The trial is scheduled to last until May 4.
