First instance trial of corruption case causing loss of nearly 1,000 billion VND

On the morning of October 22, the People's Court of Ho Chi Minh City opened the first-instance trial of the corruption case causing losses of more than VND966 billion at Dong Phuong Knitting Company and the Bank for Agriculture and Rural Development of Vietnam - Branch 6 in Ho Chi Minh City (abbreviated as Agribank Branch 6).

This is one of eight key cases that the Central Steering Committee on Anti-Corruption requested to be brought to trial before the 12th National Congress of the Party.

The defendants in the dock. Photo: Hoang Hai/VNA

According to the indictment of the Supreme People's Procuracy, 11 defendants were prosecuted for three crimes: "Abusing positions and powers while performing official duties", "Fraudulent appropriation of property" and "Intentionally violating State regulations on economic management causing serious consequences". Specifically, defendants Le Thanh Cong (former General Director of Dong Phuong Knitting Company) and Do Trong Nhan (former Director of Sieu Mau Viet Company) were charged with "Abusing positions and powers while performing official duties". Defendants Duong Thanh Cuong, Thai Cuong (former General Director and Director of Tan Phat Construction Investment Company) and accomplices Le Son Hung, Pham Hoang Tho (both former Deputy Directors of Thanh Phat Company) were charged with "Fraudulent appropriation of property" and "Abuse of trust to appropriate property".

On the side of Agribank Branch 6, the defendants Ho Dang Trung (former Branch Director), Ho Van Long (former Head of Credit Department) and 3 credit officers Truong Quoc Bao, Truong Nhat Quang, Nguyen Hoang Quoc Thuy were prosecuted for the crime of "Violating regulations on lending in the activities of credit institutions".

According to the indictment, implementing the policy of the Prime Minister and the People's Committee of Ho Chi Minh City on relocating factories and manufacturing enterprises causing environmental pollution in the city to industrial parks, Dong Phuong Knitting Company signed a contract with Phuong Nam Company to cooperate in building a Trade Center at 10 Au Co. After that, Phuong Nam Company informed Dong Phuong Knitting Company that it had transferred 80% of the project's shares to Binh Phat Company.

Taking advantage of the project implementation, since October 2010, a group of businesses and officers of Agribank Branch 6 have committed a series of illegal acts, causing a total loss to the State of more than 966 billion VND (as of the time of prosecution in September 2012). Specifically, defendant Duong Thanh Cuong, despite not having financial capacity, established many companies and hired people to be directors (Binh Phat Company, Tan Phat Company, Thanh Phat Company), then directed his subordinates to prepare documents to borrow money at Agribank Branch 6. The employees and officers of Agribank Branch 6, although knowing clearly that Cuong's company was newly established and did not have financial capacity, and that the mortgage documents related to the project at 10 Au Co were not mortgageable, still prepared loan documents.

In this case, defendant Ho Dang Trung, former Director of Agribank Branch 6, decided to lend 170 billion VND to Tan Phat Company when the project had not been approved by competent authorities; arbitrarily lent money beyond his authority; signed a mortgage contract and mortgaged assets that were not allowed; did not notarize and did not register secured transactions; disbursed funds incorrectly according to the loan contract; lent mortgaged assets without taking measures to prevent risks. Regarding the loan of 628 billion VND to Thanh Phat Company, defendant Trung also committed similar violations. Also colluding with Trung to carry out the above acts were Ho Van Long (former Head of Credit Department of Agribank Branch 6), Truong Quoc Bao, Truong Nhat Quang, Nguyen Hoang Quoc Thuy (all former credit officers of Agribank Branch 6).

The trial is expected to last until October 30./.

According to VNA