Hua Thi Phan to be prosecuted in phase 2 of notorious VNCB case

Hua Thi Phan and 27 will be tried on multiple counts of violations

On January 12, 2018, the investigation agency proposed to prosecute Hua Thi Phan and 27 suspects for "intentionally violating state regulations on economic management and causing serious consequences," "abusing trust to appropriate property," and "violating regulations on credit institutions' lending activities" at Trust Bank (now Vietnam Construction Bank–VNCB).

Specifically, the agency proposed to prosecute Ngo Kim Hue (former deputy general director of Trust Bank and director of Phu My Co., Ltd.), Bui Thi Kim Loan (accountant of Phu My Co., Ltd.) for "abusing trust to appropriate property" and "intentionally violating state regulations." Lam Kim Dung, former director of Lam Giang Co., Ltd. is proposed to be prosecuted for "abusing trust to appropriate property.” The 24 other suspects are proposed to be prosecuted for "intentionally violating state regulations."

According to the investigation conclusion, in June 2010, Hua Thi Phan and Phu My Investment and Development JSC and 14 other people bought over 254 million shares of Trust Bank for over VND2.5 trillion ($110 million).

Phan abused her holding of nearly 85 per cent of the bank's charter capital to take over the management of all Trust Bank activities, taking over the entire board of management, executive board, and staff. She took over all investment, credit activities, as well as abused trust to appropriate and misuse more than VND12 trillion (nearly $530 million).

Phan increased the value of the house at 5 Pham Ngoc Thach Street (District 3, Ho Chi Minh City) to sell to Trust Bank to cause financial damage of over VND1.1 trillion ($48.5 million).

Bui Thi Kim Loan helped Phan to account and embezzle a total amount of VND5,256 billion ($231.6 million).

Through 29 loans of Phu My, Phan embezzled over VND3.581 trillion ($158 million). She also asked Trust Bank to illegally invest into four other real estate projects to embezzle over VND1.037 trillion ($$45.7 million) and raised the value of other 25 properties sold to Trust Bank to embezzle over VND1 trillion ($44 million).

The agency has concluded that the violations of Hua Thi Phan and others caused serious financial damage to Trust Bank, totaling at VND6.362 trillion ($280.3 million), excluding the VND5.643 trillion in damages in three other violations which will be investigated in the second phase of the case.

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