13 July 2017

Notorious ex-banker guilty of 666 million USD loss

Pham Cong Danh, ex-Chairman of the VNCB Board of Directors, Chairman of the Members Board and General Director of Thien Thanh Group (2nd R) (Source: VNA)

Hanoi (VNA) – Police have concluded that ex-banker Pham Cong
Danh caused additional losses of more than 6 trillion VND (around 266 million
USD) in the second stage investigation into his case, solidifying the
investigation’s record as the biggest economic probe in Vietnam’s history.

With the previous indictment of causing 9 trillion VND of losses
to the Vietnam Construction Bank (VNCB), where Danh was the former chairman of
the board, the 63-year-old man is now allegedly responsible for a stunning
total of 15 trillion VND (some 666 million USD) in bank losses.

Following the first trial on the VNCB case, in which Danh was
sentenced for 30 years in prison, the police initiated another investigation
into the trillion-loans made since 2012 between the VNCB and another three
banks: the Sai Gon Thuong Tin (Sacombank), the Tien Phong (TPBank) and the Vietnam
Investment and Development (BIDV).

The police on July 11 announced that it finished its
investigation, asking the Supreme People’s Procuracy to prosecute Danh and his
23 partners in crime for deliberate breach of law.

According to the police, the ex-banker ordered his underlings to
make up blank documents to turn more than 1.8 trillion VND of the VNCB into the
collateral for an equivalent loan from the Sacombank. Danh spent the money to
pay off some 1.7 trillion VND of debts for his six companies, while the rest
was for personal use.

Using the same trick, Danh transited another 1.7 trillion VND of
the VNCB to the TPBank for a loan to clear off debts of his Thien Thanh
corporation and other activities.

He also ordered 12 companies he established by him to make loans from
the BIDV using more than 3 trillion VND of the VNCB as collateral assets.

The police found that Danh and his underlings caused a total loss
of more than 6 trillion VND to the VNCB.

HCM City’s Civil Judgment Enforcement Department Head Vu Quoc
Doanh on July 10 said that the amount of money needed to be retrieved in the Pham
Cong Danh’s case reached nearly 12 trillion VND. Of which, the department so
far collected more than 5 trillion VND, accounting for about 40 percent of the
target.

Doanh said that the police managed to seize a large amount of
assets during its investigation into the case. At least 95 percent of the
losses are likely to be retrievable.-VNA



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