Trial on Construction Bank case resumed

HCM City (VNA) – The Ho Chi Minh City People’s Court on July 24 resumed the trial on the case of “deliberately violating State regulations on economic management, causing severe consequences” at the Vietnam Construction Bank (VNCB, now Construction Bank).

This is the second phase of the case, which involves Pham Cong Danh, ex-Chairman of VNCB Board of Directors, Chairman of the Board of Members and General Director of Thien Thanh Group, and Tram Be, former Vice Chairman of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), and 44 accomplices. In this phase, they are accused of causing economic losses of more than 6.1 trillion VND (268.4 million USD) to the VNCB (The first phase involved 9 trillion VND).

The trial was held for the first time in January 2018. However, on February 7, the court decided to return the dossier of the case and requested further investigation. On June 20, the Supreme People’s Procuracy supplemented documents and handed over the dossier to the court, and affirmed the result of further investigation would not change the case content mentioned in the 2017 indictment.

At the July 24 court, 45 defendants were brought to the trial, while one was absent as being hospitalised for treatment. 

Apart from the defendants, the court summoned over 200 people with related interests and obligations, including Tran Bac Ha, former Chairman of BIDV. However, Ha was also absent as he is under treatment in Singapore.

More than 70 lawyers defend legitimate rights and interests of the defendants and concerned people.

According to the indictment, in 2013 and 2014, Pham Cong Danh needed money but was unable to directly borrow from VNCB. He ordered executives and staff of VNCB and the Thien Thanh Group to compile false documents in the names of 29 companies which were established in Danh’s name or others, in order to take loans from Sacombank, TPBank and BIDV.

Danh used the borrowed money for personal purposes and failed to pay off the debts.

He and his accomplices also used VNCB’s money to deposit at Sacombank, TPBank and BIDV as guarantees for his companies’ loans. The banks later kept the money as payment for the loans. Danh and his accomplices’ acts caused losses of 6,126 billion VND to VNCB.-VNA