Former BIDV Chairman Tran Bac Ha committed "very serious" violations

Mr. Tran Bac Ha.

Regarding the inspection when there were signs of violations by the Standing Committee of the Party Committee of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), according to the Central Inspection Commission, the Standing Committee of the BIDV Party Committee for the 2010-2015 and 2015-2020 terms violated the principle of democratic centralism; lacked responsibility, loosened leadership, direction, management, and lacked inspection and supervision, allowing BIDV to have many serious and systematic violations in implementing working regulations, regulations on decentralization of authority and credit granting processes and procedures, causing very serious consequences, increasing bad debts, especially debts with the possibility of losing capital; allowing many officials to violate party discipline and state laws, being criminally prosecuted; reducing budget revenue, affecting business results, income, jobs and lives of BIDV employees.

Regarding personal responsibility, the Central Inspection Commission concluded that Mr. Tran Bac Ha, former Chairman of the Board of Directors (BOD), was primarily responsible for the violations and shortcomings of the Party Committee Standing Committee for the 2010-2015 and 2015-2020 terms. Mr. Ha violated the principle of democratic centralism and working regulations, showed signs of imposition and lack of democracy in direction and management; violated the resolution of the Party Committee Standing Committee on the obligations and responsibilities of those holding positions in the BIDV system; violated the process, procedures, authority, and regulations on credit in approving policies and deciding on a number of loans, guarantees, investments, and debt management, including approving a loan policy of VND 4,700 billion for 12 companies related to the case at the Construction Bank.

In addition, Mr. Doan Anh Sang, Deputy General Director, and Mr. Tran Luc Lang, Deputy General Director, are jointly responsible for the violations and shortcomings of the Party Committee Standing Committee; jointly responsible for a number of loans, guarantees, investments, and debt management violations; and responsible for proposing and appraising the loan policy of VND 4,700 billion for 12 companies related to the case that occurred at the Construction Bank.

“The violations of Mr. Tran Bac Ha are very serious, the violations of the Standing Committee of the BIDV Party Committee for the 2010-2015, 2015-2020 terms and Mr. Doan Anh Sang and Mr. Tran Luc Lang are serious, negatively affecting the reputation of the Party organization and BIDV Bank, causing outrage in society, to the point of having to consider and take disciplinary action,” the announcement of the Central Inspection Commission clearly stated.

According to the Central Inspection Commission, the State Bank of Vietnam is responsible for the above violations and shortcomings of BIDV Bank. The Central Inspection Commission requests the State Bank of Vietnam's Executive Board to seriously review, learn from experience and direct the review of responsibilities of organizations and individuals related to BIDV's violations and shortcomings; promptly review, amend and supplement regulations in the banking sector; strengthen inspection, examination and supervision of credit institutions.