Former General Director of Dong A Bank accused of causing losses of 3,500 billion VND

The Investigation Police Agency (Ministry of Public Security) has just completed the investigation conclusion of the case of intentional violation of lending regulations at Dong A Commercial Joint Stock Bank (DAB), proposing to prosecute Mr. Tran Phuong Binh (former general director, CEO).Vice Chairman of DAB Board of Directors) with 21 accomplices.

According to records, in 2013 Dong A suffered a loss while wanting to increase its charter capital from 5,000 to 6,000 billion VND.Table withMr. Phan Van Anh Vu(at this time representing Bac Nam 79 Construction Company), Mr. Binh reached an agreement: Bac Nam 79 bought 60 million shares of Dong A for 600 billion VND.

However, Mr. Vu did not have cash, so he mortgaged a 220-hectare plot of land in Da Nang to borrow 400 billion VND from Dong A. Mr. Binh agreed to this plan. The remaining 200 billion VND, Mr. Binhdirect subordinates to legalize fake collection documents.

When the capital increase failed, Mr. Binh was accused of making a sudden decision to direct his subordinates to return 600 billion VND to Bac Nam 79 Company and also calculate interest.

Mr. Vu then used this money to buy 50 million shares of Dong A, keeping 100 billion VND. Dong A could not recover this money.

The investigation agency said that at first, Mr. Vu denied the above actions, but later changed his testimony, confirming the investigation content was correct. He also said that everything was done under the direction of Mr. Binh.

The investigation agency concluded that Mr. Vu, for personal gain, caused a loss of 200 billion VND to Dong A and must be responsible for paying it back. Mr. Vu's actions had enough signs to constitute the crime of Abuse of trust to appropriate property, butDue to the expiration of the investigation period, the investigation agency will clarify this with the Supreme People's Procuracy later.

With Mr. Tran Phuong Binh's violations, the authorities determined that he haddirecting subordinates to spend 1,200 billion VND in violation of the principles to buy 74 million shares of Dong A, spend 295 billion VND to buy nearly 14 million USD, and 309 billion VND for personal use. This is an act of abuse of trust to appropriate assets.(Article 140 of the 1999 Penal Code), total amount of nearly 1,800 billion VND.

According to the investigation agency, Mr. Binh alsodirecting subordinates to illegally spend more than 460 billion VND to pay interest outside the law, spending nearly 86 billion VND to pay off a loan to Nguyen Hong Anh (former officer of Ho Chi Minh City Police), illegally exporting gold causing a loss of more than 600 billion VND, illegally trading foreign exchange causing a loss of 385 billion VND and usingnearly 50 billion VND for other purposes. In total, he was accused of causing a loss of 1,650 billion VND to Dong A, showing signs of committing the crime of intentionally violating state regulations on economic management causing serious consequences (according to Article 165 of the 1999 Penal Code).

There are 21 other people involved in the case, but the investigation agency believes that "defendant Binh must be held accountable."responsible for the entire damage of nearly 3,500 billion VND in this case".