Vietnam indicts former gov’t minister, 3 bankers

Vietnam indicts former gov’t minister, 3 bankers

Vietnam's police agency on Thursday afternoon (September 27) announced the indictments against Tran Xuan Gia, former bank chairman and former government minister and three former deputy bank chairmen.

The information was released by Vu Duc Dam, Minister and Chairman of the Government Office, at the regular press conference held at the Government Office late Thursday afternoon.

Gia is former board chairman of Asia Commercial Joint Stock Bank or ACB, one of the country’s biggest banks. Mr. Gia, 73-year-old, is also a former minister of planning and investment.

The three others are Le Vu Ky, Trinh Kim Quang and Pham Trung Cang who are all former deputy chairmen of ACB (HNX: ACB).

Cang is also former deputy chairman of another bank - Vietnam Export-Import Commercial Joint Stock Bank, better known as Eximbank (HoE.

On September 19, it was announced that the four resigned from their bank posts, all on the same day.

They now face charges of “deliberately violating state regulations causing serious consequences”.

However, since the four fully cooperated, have good records, and clear residences, the police have agreed with the Supreme Prosecutor’s Office to grant bail to the four, banning them from leaving their registered localities.

They are suspected of involvement in a fraud case in which Huynh Thi Huyen Nhu, former director of the Dien Bien Phu transaction office of Vietinbank (Vietnam Joint Stock Commercial Bank for Industry and Trade), cheated nearly VND719 billion off ACB, said Colonel Nguyen Duc Thinh, director of the police department for economic crime investigation.

Some former leaders of ACB issued guidelines to instruct ACB employees to deposit idled Vietnam dong and US dollar in 29 banks to enjoy higher interest rates than the ceiling rate capped by the State Bank of Vietnam then, said Thinh.

A part of the sum was deposited at the Vietinbank’s branches of Ho Chi Minh City and Nha Be to enjoy non-contractual interest rate differences, ranging from 3.7 percent to 8 percent per annum, of which about VND718.9 billion was then illegally appropriated by Nhu.

In June 10, 2011, the Investigation Police Agency under the Ministry of Public Security initiated criminal proceedings against Nhu and other culprits on the case.

Late last month, the local police agencies arrested and prosecuted Nguyen Duc Kien, former vice chairman and a co-founder of ACB, and Ly Xuan Hai, ACB’s ex-CEO for the same charges based on documents and evidence collected and identified by SBV.

The prosecution of the aforementioned accused is to serve the government's goal to stabilize the local banking system in an effort to make it healthier for the restructuring process, and to ensure liquidity safety for depositors.

Prime Minister Nguyen Tan Dung has closely given directions, especially in the investigation of the case, to strictly imposed appropriate punishments for violations in banking acquisition and monetary policy destabilization, Thinh added.

The Government has foreseen the possible outcomes of Tran Xuan Gia’s prosecution with a focus on ensuring the national banking system stability and guaranteeing the interests of the depositors, said Minister-Chairman of the Government Office Vu Duc Dam in the press meeting.

As Gia was dismissed from the position of ACB chairman before being prosecuted, and the bank has also appointed a new chairman, the prosecution does not affect the operation of the ACB. Government, he added.

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