Illegal loaning found at Sacombank
Illegal loaning found at Sacombank
The State Bank of Vietnam’s inspectors have come to a conclusion that the loans to Dang Van Thanh and his family’s companies some years ago were illegal, forcing Thanh to pay debts to reduce the outstanding loans to the allowed level.
The year 2012 was an eventful time for Dang Van Thanh and his family. Thanh and his sons stepped down from the posts of President of Sacombank and Sacombank’s subsidiaries.
Thanh has been well known in Vietnam as the founder of Sacombank, who deserves the credit of develop Sacombank, which was once a small rural bank, into one of the biggest commercial banks now in Vietnam. Thanh’s family is considered one of the most influential business families in Vietnam. The name of the big tycoon can be found in the list of the Vietnamese richest stock millionaires released by a local newspaper.
Pham Huu Phu, President of Sacombank on April 3 said that Thanh-relating group of companies borrowed VND7 trillion from Sacombank. Meanwhile, the enterprises relating to Thanh Thanh Cong Company where Thanh’s wife – Huynh Bich Ngoc works as advisor – is still owing VND3.9 trillion to Sacombank.
According to the bank, Dang Van Thanh and his son, Dang Hong Anh, who is a member of Sacombank’s board of directors, have authorized the board of directors to sell nearly 80 million shares they were holding.
The money to be got from the sale would be used to pay the VND1.5 trillion debt relating to Thanh’s companies. The sum of money was disbursed in the period until May 2012, when Thanh was still on the post of the President of Sacombank.
The authorized sale of 80 million shares has raised a worry about the oversupply which would vibrate the stock market. However, Phu said Sacombank has signed a contract on selling all the shares to 2 individual investors under the negotiation method. The investors have accepted to pay VND20,900 per share and have paid a deposit.
“We will collect VND1.668 trillion by May 31, 2013 at the latest,” Phu said.
When asked about the legitimacy of the loans, Phu said that the loans were mortgaged by shares, real estate products, inventory products, machines, workshops.
However, the State Bank of Vietnam’s inspectors have concluded that the loans were illegal.
The Law on Credit Institutions does not allow a commercial bank to lend to the companies relating to a member of the board of directors more than 25 percent of the chartered capital of the bank.
Meanwhile, the total outstanding loans disbursed for Thanh-relating group of companies once reached VND7 trillion, or 51 percent of the chartered capital of VND10.7 trillion of the bank.
The State Bank has instructed Sacombank to collect debts from the group of companies to reduce the outstanding loans to the subjects to 25 percent of the bank’s chartered capital.
Regarding the solvency of the borrowers, Sacombank said the bank needs to collect back VND3.9 trillion from the group of companies which the bank provided as commercial loans and invested in the companies by buying corporate bonds.
The group of companies includes Tan Thang, a real estate developer. However, the company’s solvency is good.
Analysts say in order to pay back all the debts, Thanh needs to sell 40 percent of his capital contribution at Tan Thang Company, or withdraw all of his capital from the companies relating to Thanh Thanh Cong company.
vietnamnet
