Former Deputy Governor of State Bank goes on trial

Dang Thanh Binh (R) and his accomplices. Photo: tamnhin

According to the indictment, Dang Thanh Binh held responsibility for the State Bank of Vietnam’s legislative department helping the governor implement a plan to restructure six weak lenders, including VNCB, under the Project 254 of the Government.

In August 2012, Binh drew up a plan to restructure VNCB. Accordingly, the Prime Minister instructed the State Bank to identify the real financial capacities of the new investors in the bank. However, he did not follow the instruction but created favorable conditions for Pham Cong Danh (representative VNCB) to use VNCB as a tool to commit crime.

By the time, VNCB had been classified as a weak bank, which should have been put under a special supervision mechanism of the State Bank. Accordingly, all transactions worth over VND 5 billion must have been approved by the supervisory group of the State Bank led by Binh. In practice, the supervisory team failed to control this bank’s loans of over VND5 billion.  

As of July 2014, when legal proceedings against Danh and his accomplices were set up, VNCB held equity total bad debt of VND18 trillion ($793 million), fourfold as much as the amount before the bank restructuring, bringing its total dept to more than VND38 trillion ($1.67 billion).

Pham Cong Danh and his accomplices caused serious economic losses of over VND 15 trillion (US$ 656.2 million) to the bank, leaving negative impacts to the national financial policy.  

In this case, Binh and his supervisory team are accused of lack of responsibility causing serious economic consequences. The prosecution and trial of the internees reflects the strictness and fairness of the laws.

The trial will run until June 29.