Transaction at Sacombank (Illustrative image. Source: internet)Tram Be is the former Vice Chairman of the boardof directors of Sacombank and Chairman of the bank’s credit council, while PhanHuy Khang is an ex-member of the credit council and former General Director ofthe bank.
They are accused of intentionally violating Stateregulations on economic management and causing serious consequences relating toa case involving Pham Cong Danh, former Chairman of the board of directors atthe Vietnam Construction Joint Stock Commercial Bank (VNCB) and former Chairmanof the members’ council and General Director of the Thien Thanh Group Co. Ltd.
Sacombank said according to a State Bank ofVietnam (SBV) inspection, Sacombank did not incur losses through lending to sixcompanies Danh found to have linked with in the case, adding that the bank recoveredthe capital and interest from the loans by April 2014.
Tram Be has not had a management position at thebank since February 23, 2017, while Phan Huy Khang held no position at the banksince July 3, 2017, according to the bank.
On June 30, 2017, Sacombank’s annualshareholders’ meeting for the 2016-2017 fiscal year elected the board ofdirectors and supervisory board for 2017-2021 with Duong Cong Minh elected as Chairmanof the board of directors.
The press release said Minh is leadingSacombank through a banking restructuring scheme approved by the SBV with severalmajor plans, such as reshuffling apparatus and personnel, improving businessoperations, handling and recovering bad debts, managing expenses and reformingbusiness procedures and ensuring safety and sustainable development.
Sacombank said it is operating normally andrecording stable growth. In the first seven months of the year, the bankmobilised more than 326.6 trillion VND (14.37 billion USD), a year-on-year riseof 8 percent, and lent 218.5 trillion VND (9.61 billion USD), a yearly increaseof 12.2 percent. Its accumulated profits in the first seven months reached 586billion VND (25.78 million USD), surpassing the yearly target by 29 percent.
The Police Department for Investigation ofEconomic and Corruption-related Crimes on August 1 launched criminalproceedings against and detained Tram Be and Phan Huy Khang.
Allegedly, Tram Be colluded with Pham Cong Danhand accomplices in using money from Sacombank to guarantee and pay off thedebts of six companies set up by Danh, causing losses of more than 1.8 trillionVND (79.25 million USD) for VNCB.
In April 2013, Danh asked Tram Be to lend himmoney to pay off debts the six companies had incurred. Tram Be agreed to loanDanh 1.8 trillion VND from Sacombank, with VNCB’s deposits in Sacombank used ascollateral.
Later, Tram Be took Danh to meet Phan Huy Khang tocomplete loan procedures.
On April 26, 2013, 1.8 trillion VND wastransferred to Danh’s account. A day later, he used 1.7 trillion VND to pay offdebts to the Bank for Investment and Development of Vietnam (BIDV). Danh keptthe remaining money in his personal account.
As Danh’s companies failed to pay off theirdebts to Sacombank, Sacombank took 1.8 trillion VND and 35 billion VND ininterest from VNCB’s deposits.
On February 24, 2017, the SBV announced that ithad terminated Tram Be’s roles at Sacombank.-VNA
VNA
