Major case of "over 20 billion VND disappearing without a trace": Proposal to prosecute additional individuals.
This is one of 12 major economic corruption cases that the Central Steering Committee on Anti-Corruption directed to be investigated, prosecuted, and tried in 2017.
The Hanoi People's Court recently brought Bui Van Khen (born in 1958, former Director of BIDV's one-member limited liability financial leasing company) and Nguyen Viet Hung (born in 1968, former Head of the Individual Customer Department, BIDV Chuong Duong branch) to trial for the crime of "Intentionally violating State regulations on economic management causing serious consequences".
The case occurred at the Hanoi branch of the Vietnam Investment and Development Commercial Bank (BLC Hanoi), a limited liability financial leasing company.
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| The defendants in court. |
This company is 100% owned by the Vietnam Investment and Development Bank (BIDV). This is one of 12 major economic corruption cases that the Central Steering Committee on Anti-Corruption directed to be investigated, prosecuted, and tried in 2017.
According to the indictment, Mr. Khen and Mr. Hung leased machinery and equipment to Lao Cai Cement Company for the construction of the Nam Gie hydroelectric project.
When signing the asset lease contract, the financial leasing company does not commit to purchasing the machinery and equipment; nor does it retain ownership of the assets after leasing by directly signing the contract or registering ownership with the competent authority. Instead, it authorizes the lessee, Lao Cai Cement Company, to purchase and register ownership.
After purchasing the property, the defendants failed to inspect its use and did not urge payment of rent as per the contract. When the lessee seriously violated the contract, no measures were taken to terminate the contract and recover the property.
The defendants' actions caused the leasing company losses exceeding VND 11.3 billion (principal) and VND 9.6 billion (interest).
The Supreme People's Procuratorate determined that the actions of defendants Bui Van Khen and Nguyen Viet Hung violated Articles 1, 24, and 27 of Decree 16/2001/ND-CP dated May 2, 2001, regulating the organization and operation of financial leasing companies; and violated Point 9, Article 1 of Decree 65 dated May 19, 2005, amending Article 28 of Decree 16 dated May 2, 2001.
In court, the two defendants did not admit to the charges. On the afternoon of March 19, after consideration, the panel of judges changed the charges against the defendants from "Intentional violation of regulations" to "Negligence causing serious consequences." The panel of judges sentenced defendant Khen to 5 years in prison; and Hung to 30 months in prison.
The trial panel recommended that the investigating agency initiate criminal proceedings against the individuals who committed violations at BIDV Lao Cai.
