Investors and customers of the Saigon Commercial Joint Stock Bank (SCB) have been assured that their rights and interests will not be affected by the decision to prosecute Van Thinh Phat Group for "fraudulent appropriation of property" related to the issuance and sale of bonds.

Leaders of the State Securities Commission said Van Thinh Phat Group will be handled under criminal law, adding: “The stock market was still guaranteed to operate normally and stably.”

Since Saturday, investors' confidence has been harmed by the incidents related to specific personal and corporate violations at Van Thinh Phat Group, which has a close connection with SCB on the HOSE.

At a press conference held by the State Bank of Vietnam (SBV) on Saturday, Hoang Minh Hoan, deputy general director of SCB announced that the Ministry of Public Security has decided to prosecute the accused Truong My Lan for the issuance and sale of bonds of An Dong Investment Group Joint Stock Company.

Hoan confirmed: "Regarding this incident, SCB has reviewed and confirmed that An Dong Company is not a shareholder of SCB and Lan does not hold managerial and executive positions at SCB,” adding that therefore it won't affect SCB's normal business operations, the rights and interests of depositors as well as the rights and interests of SCB's partners and customers in accordance with the law."

The bank emphasised that customers' interests were first priority, providing phone numbers for customers to contact.

Hoan said as of September 30, 2022, SCB has 4,132 shareholders, including seven foreign shareholders, who own 27.91 per cent of charter capital.

Among 4,125 domestic shareholders, there are 11 institutional shareholders, accounting for 15.7 per cent of charter capital. The remaining shareholders hold 56.1 per cent of charter capital. SCB planned to increase the number of funds at branches, and increase the number of deposits at the State Bank, to meet the demand for inter-bank payment.

Hoan said that in recent days, sizeable numbers of customers have been withdrawing large amounts of cash, forcing banks to increase personnel to meet the needs of customers.

Vo Minh Tuan, director of the SBV, Ho Chi Minh City brance said: “SCB is currently working normal and in stable operation.”

Tuan said that ensuring the operational safety of credit institutions has been a very important issue for many years, adding that SBV has many solutions to ensure the safety of credit institutions and will continue to strengthen solutions to ensure the interests of customers.

He said deposit activities were normal activities, and people's assets were fully guaranteed, saying: "We ask people not to panic, leading to early withdrawal of deposits that affect their property rights.”

At the same time, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) also spoke up because some customers mistook SCB's name for Sacombank.

On its fanpage, Sacombank said "SCB and Sacombank are two different banks. Sacombank is Saigon Thuong Tin Bank, stock code is STB."

On the same day, the Investigation Police Agency (C03) of the Ministry of Public Security issued a decision to prosecute a fraud case relating to property that occurred at An Dong Investment Group Joint Stock Company.

C03 issued a decision to prosecute the accused and executed a warrant to arrest Truong My Lan, the founder and currently holds the position of chairperson of the Board of Directors of Van Thinh Phat Group Joint Stock Company.

The investigative agency also prosecuted and detained the defendants of Truong Hue Van, General Director of Windsor Real Estate Management Group Joint Stock Company; Nguyen Phuong Hong, assistant to Van Thinh Phat Group Joint Stock Company; Ho Buu Phuong, former chairman of the board of directors of Tan Viet Securities Joint Stock Company, former deputy general director in charge of finance at Van Thinh Phat Group Joint Stock Company.

Initial investigation results determined that the accused committed fraud in the issuance and trading of bonds contrary to the law to appropriate trillions of dong from the people during 2018 - 2019.

The State Securities Commission confirmed that the case of fraud to appropriate property, which occurred at An Dong Company and other organisations and units, is a case directly related to a number of individuals at a number of specific enterprises and would be handled under the criminal law, affirming that Viet Nam's stock market is still operating normally. The body said that both the Government, the Ministry of Finance and the management agencies have been closely directing to focus the investment activities and solutions to support the stock market to develop stably and sustainably.

Deputy Finance Minister Nguyen Duc Chi said that under the direction of the Government and the Ministry of Finance, the State Securities Commission and relevant agencies have and will implement many synchronous solutions to ensure the operation and development of the country and the stability of the stock market; at the same time, closely coordinate with relevant authorities to best protect the legitimate rights and interests of relevant investors.

Chi said: "Therefore, investors need to be really calm, specifically analyse risks and potential opportunities in the stock market to make effective investment decisions."

SCB was set up in December 2011 from the voluntary merger of three banks: Sai Gon J.S. Commercial Bank (SCB), First J.S. Commercial Bank (Ficombank) and Viet Nam Tin Nghia J.S. Commercial Bank (TinNghiaBank). According to different sources, Lan, who was arrested was the major investor in the bank. — VNS