Seven former officials of Dai Tin Bank (Trust Bank), including former chairman of its board of directors and general director, were arrested and put under temporary detention on Tuesday.
Hoang Van Toan, former chairman of Trust Bank’s board of directors, is among the seven arrested.
Members of the bank’s credit council, former chairman of the board of directors Hoang Van Toan and the bank’s former general director Tran Son Nam have been charged with “deliberately violating State regulations on economic management, causing severe consequences”.
The Economic and Corruption Crimes’ Police Investigation Department (C46) has shifted the defendants to Ha Noi for further investigations.
The council had approved the credits of two documents to borrow VND650 billion (US$28.9 million) from Dai Hoang Phuong Company and Thinh Quoc Company.
The bank accepted as deposits a land use right and land use right certificate for a land lot in a multi-storey commercial and service complex in Da Nang City’s Chi Lang stadium in Hai Chau District.
The bank incurred a loss of more than VND470 billion ($20.9 million) because of the two loans.
Earlier, Trust Bank was renamed Viet Nam Construction Bank (VNCB).
After the State Bank of Viet Nam gave its nod to Trust Bank’s restructuring plan, Pham Cong Danh took over the small, debt-ridden bank and renamed it VNCB.
However, Danh abused his post as chairman of VNCB’s board of directors and chairman of member’s board of Thien Thanh Group, getting his staff in the group and the bank to violate rules, which resulted in the Government losing around VND9 trillion ($403.5 million), the largest economic loss caused by corruption.
In September 2016, Danh was accused of “deliberately violating State regulations on economic management, causing severe consequences” and “violating lending regulations of credit institutions” and convicted.
However, Danh and his accomplices have appealed against the court’s judgement, asking for the penalties to be reduced.
The appeal hearing started in HCM City on December 27 and is scheduled to close on January 25.