The big case of "more than 20 billion gone": Proposal to handle more individuals

The Hanoi People's Court has just brought Mr. 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 financial leasing company of Vietnam Joint Stock Commercial Bank for Investment and Development, Hanoi branch (BLC Hanoi Company).

This enterprise is 100% owned by the Bank for Investment and Development of Vietnam (BIDV). This is one of 12 "major" economic corruption cases that the Central Steering Committee on Anti-Corruption directed to complete investigation, prosecution and trial in 2017.

According to the indictment, Mr. Khen and Mr. Hung leased finance to Lao Cai Cement Company in the form of purchasing machinery and equipment for the Nam Gie hydropower construction project.

When signing a property lease contract, the financial leasing company does not commit to purchasing machinery and equipment; does not hold ownership of the property after leasing by directly signing the contract, registering ownership of the property with the competent authority, but authorizes the lessee, Lao Cai Cement Company, to purchase and register ownership.

After spending money to purchase the property, the defendants did not check the use of the property, did not urge the payment of rent according to the contract. When the lessee seriously violated the contract, there was no measure to terminate the contract to recover the property.

The defendants' actions caused losses to the financial leasing company of more than VND 11.3 billion (principal) and VND 9.6 billion (interest).

The Supreme People's Procuracy 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.

At court, the two defendants did not admit the charges. After consideration on the afternoon of March 19, the panel of judges changed the charges against the defendants from Intentional Violation to Negligence Causing Serious Consequences. The panel sentenced defendant Khen to 5 years in prison; Hung to 30 months in prison.

The People's Court recommended that the Investigation Agency take criminal action against individuals who committed violations at BIDV Lao Cai.