Mr. Dinh La Thang must compensate 600 billion VND

After nearly three hours of reading the verdict, this afternoon the Hanoi People's Court declared that defendant Dinh La Thang (former Chairman of the Board of Directors of the Oil and Gas Group - PVN) committed the crime of intentionally violating State regulations on economic management, causing serious consequences (Article 165 of the 1999 Penal Code).

For the same crime, Mr. Nguyen Xuan Son (former deputy general director) was sentenced to 30 months in prison, Ninh Van Quynh (former chief accountant) to 7 years in prison, Vu Khanh Truong to 5 years, Phan Dinh Duc to 15 months of non-custodial reform, Nguyen Thanh Liem to 22 months of non-custodial reform, and Nguyen Xuan Thang to 22 months in prison.

Mr. Ninh Van Quynh was also sentenced to 16 years in prison for the crime of Abusing position and power to appropriate property (Article 280 of the 1999 Penal Code).

The court believes that it is appropriate that Mr. Thang receive a higher penalty than the other defendants.

Mr. Thang must compensate 600 billion, Ninh Van Quynh must compensate 100 billion, Vu Khanh Truong 40 billion, the remaining defendants each 15 billion.

According to the verdict, after five days of trial, the interrogation process showed that since September 2008, Mr. Dinh La Thang had directed and decided to let this group contribute capital to Oceanbank.

Mr. Thang clearly knew the weak capacity of Oceanbank, and knew that according to legal regulations, if he wanted to invest capital to become a strategic shareholder of this credit institution, he had to report to the Prime Minister for approval and get the Prime Minister's approval. However, the former chairman of PVN deliberately did not do so and directed his subordinates to violate the State's regulations.

Mr. Thang is said to have committed many violations and then reported to the Prime Minister and relevant agencies to legitimize them. The defendants Vu Khanh Truong, Nguyen Thanh Liem, Nguyen Xuan Thang, Phan Dinh Duc, who were then members of the Board of Directors of PVN, along with Mr. Nguyen Xuan Son and Ninh Van Quynh (at that time Deputy General Director and Chief Accountant), carried out Mr. Thang's instructions and policies. Because Oceanbank committed many violations and was bought by the State Bank for 0 VND in mid-2015, 800 billion VND of PVN's capital contribution was lost. The cause of the 800 billion VND loss, according to the authorities, was due to the illegal acts of Mr. Dinh La Thang and his accomplices.

The court determined that since the signing of the agreement, Mr. Thang had not asked for the Prime Minister's opinion or gone through the Board of Directors. The capital contributions of 400 billion and 300 billion (phases 1 and 2) also did not wait for the Government's opinion.

From the results of the investigation and questioning, the Hanoi People's Court believes that there is sufficient basis to conclude that Mr. Dinh La Thang has the highest authority at PVN, is responsible for managing, preserving and developing capital assigned by the State, but has directed and decided to contribute capital to Oceanbank in violation of the law.

Oceanbank's profits are virtual

According to the verdict, for the third time, PVN contributed 100 billion, raising the capital in Oceanbank to 800 billion. This was approved by the members of PVN's Board of Members, Nguyen Xuan Thang, Vu Khanh Truong, Nguyen Thanh Liem, then Mr. Nguyen Xuan Son and Ninh Van Quynh signed to approve the payment. This capital contribution made PVN's capital account for 20% of Oceanbank's charter capital - contrary to the credit law's regulations which only allow a maximum of 15%.

The court concluded that, although Mr. Thang was on a business trip when the third capital contribution resolution was signed, after returning he knew about it but without any instructions, he decided to appoint a representative for 20% of PVN's capital at Oceanbank. Thus, throughout the policy, through the three capital contributions, PVN lost 800 billion when Oceanbank made losses. Mr. Thang's actions were intentional violations.

According to the court, the view that PVN did not suffer any damage in its capital contribution because it was still paid annual dividends is unfounded. Because the State Bank Inspectorate's report showed that Oceanbank was operating at a loss during the time PVN contributed capital. "The bank's annual financial report is inaccurate and does not reflect the true state of its business. PVN's profit according to Oceanbank's financial report is virtual," the verdict stated.

PVN cannot withdraw 800 billion VND because Oceanbank does not have money to pay.

The court rejected the defense's argument that PVN lost 800 billion because the State Bank was forced to buy Oceanbank at zero dong. The court affirmed that PVN lost capital due to the defendants' illegal actions.

The recommendation to review the State Bank's decision to buy Oceanbank for 0 VND, according to the People's Court, does not mean that "this purchase is wrong and Oceanbank's charter capital" still exists.

The verdict stated that even if the Government agreed to allow PVN to divest, Oceanbank would not be able to pay. "Even if PVN successfully divests, the loss will be transferred to another company," the Hanoi People's Court stated.

According to the verdict, during his time as chief accountant, Mr. Ninh Van Quynh also abused his position and power to receive 20 billion VND from Nguyen Xuan Son. Mr. Quynh clearly knew that PVN's deposits benefited Oceanbank, so he received "bribes".

The court determined that Mr. Vu Khanh Truong, as a member of the Board of Directors, had intentionally violated the law, causing a loss of 400 billion VND to PVN. Mr. Nguyen Xuan Son violated the parent company's financial regulations, causing a loss of 100 billion VND to PVN.

Defendant Nguyen Xuan Thang directly signed the resolution to contribute capital for the third time of 100 billion VND, causing the total loss of this amount. Defendant Nguyen Thanh Liem participated in the vote to agree to let PVN contribute an additional 100 billion VND, bringing the total capital to 800 billion VND. After the vote, Mr. Liem left the finance and accounting department to transfer the money...

Mr. Thang's sentence was reduced due to his good character and his previous high position.

The verdict stated that this was an especially serious case, infringing on economic management activities, seriously harming public asset management, affecting people's trust, and causing especially great damage to the state.

In addition, Mr. Ninh Van Quynh's act of appropriating money seriously violates the integrity of civil servants.

Regarding personal background, Mr. Thang played a key role in the case, proposed the policy for others to commit crimes, causing great damage, but had good personal background, held a high position and had many achievements, so he was entitled to mitigating circumstances.

Mr. Ninh Van Quynh's behavior is also considered particularly serious, but he has a good character, many achievements, merits, and honestly confessed and overcame the consequences.

Mr. Vu Khanh Truong, Nguyen Xuan Son, Nguyen Thanh Liem, Nguyen Xuan Thang, and Phan Dinh Duc were determined to have played the role of accomplices in the intentional violation. The defendants all have good personal records, many achievements in building the oil and gas industry, confessed honestly, and come from families with revolutionary traditions, so their sentences should be considered for a lighter sentence.