Former executives of Sacombank kept in custody for investigation

Tuesday, 2017-08-01 21:51:36
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NDO/VNA – The Police Department for Investigation of Economic and Corruption-related Crimes on August 1 launched criminal proceedings against Tram Be and PhanHuyKhang, former executives of the Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) who were taken into custody.

Tram Be is the former Vice Chairman of the board of directors of Sacombank and Chairman of the bank’s credit council. also, PhanHuyKhang is an ex-member of the credit council and former General Director of the bank.

They are being investigated for intentionally violating the state regulations on economic management and causing serious consequences relating to a case which involves Pham Cong Danh, former Chairman of the board of directors at the Vietnam Construction Joint Stock Commercial Bank (VNCB) and former Chairman of the members’ council and General Director of the ThienThanh Group Co. Ltd, and accomplices at Sacombank.

According to initial information, Tram Be colluded with Pham Cong Danh and accomplices in sending money to Sacombank to guarantee and pay off debts for six companies set up by Danh to borrow money from Sacombank, causing a total loss of over VND1.8 trillion (US$79.25 million) for VNCB.

In April 2013, Danh asked Tram Be to lend him money. Be agreed to loan Danh VND1.8 trillion with VNCB’s deposits at Sacombank being the collateral.

Later, Be took Danh to meet PhanHuyKhang to make loan procedures. Directors of Sacombank’s District 8 and Hung Dao branches received the applications for loans of the six companies of Danh.

On April 26, 2013, VND1.8 trillion was transferred to Danh’s account. One day later, he used VND1.7 trillion to pay off debt to the Bank for Investment and Development of Vietnam (BIDV). Danh kept the remaining money in his personal account.

On February 24, 2017, the State Bank of Vietnam announced that it had terminated Be’s roles at Sacombank.

That same day, the Police Department for Investigation of Economic and Corruption-related Crimes also commenced criminal proceedings against Pham ThiTrang for her involvement in the case of Pham Cong Danh.