Vietnamese Ex-bank official faces death in $90 mln swindle case

The former director of a branch of the Vietnam Development Bank (VDB) and 12 other defendants are being tried in the Central Highlands in a large swindling case that amounted to over VND1.9 trillion (US$93 million) and was uncovered six years ago. The ex-banker is facing a capital sentence.

>> 14 sentences, including 20-yr one, in bank swindle case

Yesterday, the People’s Court in Dak Nong Province opened a trial for Vo Viet Hung, 57, the former director of VDB’s branch in Dak Lak-Dak Nong Provinces, and 12 other defendants involved in a large swindling case that occurred in 2008.

Hung has been charged with three offenses, including taking bribes, swindling to appropriate assets, and violating regulations on lending at credit institutions.

Many former bankers at Nam A Commercial Bank’s Hanoi Branch and the Ho Chi Minh City transaction center of Oriental Commercial Joint Stock Bank are facing charges of violating regulations on lending at credit institutions.

The prosecutor at court recommended that Hung be sentenced to death on the first charge, life imprisonment on the second, and 15-16 years in jail on the last.

Thus, the combined punishment proposed for Hung would be the death sentence.  

The prosecutor also suggested sentences ranging from 5 years to life imprisonment for the other 12 defendants, who have been charged with giving bribes and swindling to appropriate assets.

Before the proposed sentences were announced, the jury questioned the defendants.

Cao Bach Mai, 65, the former director of Minh Nhat Trading and Services Co Ltd in Dak Nong, told the court that in July 2008, he met Hung to apply for loans and Hung granted the loans to Mai.

Mai then made 70 false export contracts and used them as mortgages at the VDB branch to get loans totaling VND1,005 billion ($48 million), of which VND155 billion was later appropriated by Mai.

Similarly, Tran Thi Xuan, 50, the former director of Nhat Tan Trading and Services Co Ltd, forged 65 export contracts and used them as security for loans totaling VND938.5 billion ($45 million) at the same VDB branch.
Xuan later appropriated VND202 billion from the lending.

Hung clearly knew that all the contracts and other documents included in the loan files of both Mai and Xuan were counterfeit, but he still approved their applications. 

In return, Mai and Xuan both had to pay Hung a bribe of 3-5 percent of the value of each loan contract. The total amount of these bribes was about VND117 billion.

In addition, Mai said he had given Hung a diamond ring worth more than $25,000 and $100,000 in cash.

Mai and Xuan also said they jointly bought a BMW-X6 car at VND3.2 billion for Hung.    

However, according to the prosecutor, there is enough evidence to affirm that Hung received the car as a bribe, but there is not enough proof to conclude that he took VND117 billion, a diamond ring, and $100,000 in cash from Mai.

Tran Xuan Loc, another defendant who is the former head of the export credit department at the VDB branch, told the court that in late 2008, he did not approve the loan applications of both Mai and Xuan, as they had weak financial capabilities and were inexperienced in export, but Hung ordered him to proceed with the lending to these borrowers.

Some other defendants also told the court about their involvements in the swindling case.

Meanwhile, Hung rejected all the charges imposed on him in the indictment. He also turned down all allegations against him by the other defendants.

Therefore, the jury had to release Hung’s previous testimonies related to his offenses as well as evidence that prove that he had committed wrongdoings.

The hearing continues today.