Trust Bank case defendants call for trial appeal

Tuesday, Oct 23, 2018 08:16

Defendants shown at the last trial. — VNA/VNS Photo

HCM City People’s Supreme Court on Monday heard the trial appeal for the economic mismanagement and misappropriation case at Trust Bank leading to the loss of VND6.3 trillion (US$271 million).

Previously, on May 31, 28 former officials of Trust Bank (Dai Tin Bank – now known as the Viet Nam Construction Bank) were sentenced to between three and 30 years in prison by the city People’s Supreme Court on charges of “abusing trust to appropriate property” and “intentionally violating State regulations on economic management and causing serious consequences” after a three-week trial.

11 of the 28 defendants appealed the court’s verdict.

The key defendant Hua Thi Phan, former senior advisor of the management board of Trust Bank, and former chairwoman of the management board of Phu My Investment and Development JSC, appeals the entirety of the first-instance judgments. In her letter of appeal, Phan said that the first-instance judgments adjudicated unfairly for her and did not consider all evidences. Phan received the highest sentence of 30 years in jail.

In addition, 15 of 214 people involved in the case called for a trial appeal. The Viet Nam Construction Bank (CB Bank) asked the court to reconsider civil responsibilities regarding the credit loans between CB Bank and Phuong Trang Company, as well as the legality of the sale of the house at 5 Pham Ngoc Thach Street in Ward 6, District 3, HCM City.

According to the first-instance verdict, taking advantage of her majority shareholder status (at the time she controlled 84.92 per cent of Trust Bank’s charter capital), Hua Thi Phan took over management of the bank.

She wrongfully inflated the value of her house on Pham Ngoc Thach Street to sell it to Trust Bank, leading to financial loss of over VND1.1 trillion ($48.5 million). She was also alleged to have violated the accounting law, causing a loss of over VND5.2 trillion ($223.6 million) to the bank.

Phan was asked to pay compensation of more than VND 6.3 trillion ($271 million) to CB Bank. The judge panel asked Phuong Trang company and other enterprises who co-operated with Phuong Trang company to pay back VND6.4 trillion ($280 million) to the bank. — VNS

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