The Investigation Police Bureau for Economic Management Order Offences (C46) last Friday began criminal proceeding against Hua Thi Phan, a former shareholder of Dai Tin Bank (Trust Bank), now Viet Nam Construction Bank (VNCB), and searched her house and office.

Previously, at a trial over the losses of more than VND9 trillion (US$395 million) at VCNB, the HCM City People’s Court decided to launch criminal proceeding against Phan for “violating the lending regulations of credit institutions”, and “deliberately violating State regulations on economic management, causing severe consequences”.

She later appealed against the charges, but the court rejected the appeal.

Phan was accused of wrongdoings that resulted in a negative VND2.8 trillion ($122.89 million) in owner’s equity and cumulative losses of over VND6.6 trillion ($289.67 million) at Dai Tin Bank before it was sold to VNCB former chairman Pham Cong Danh.

Phan was reportedly behind Dai Tin Bank’s provision of secured and non-secured loans for 29 individuals. She also raised the value of mortgaged assets to withdraw money from Dai Tin Bank.

In addition, in January, seven former officials of Dai Tin Bank, including former board chairman Hoang Van Toan and former general director Tran Son Nam, were arrested on charges of “deliberately violating State regulations on economic management, causing severe consequences”.

Toan and other officials of Dai Tin Bank’s credit department gave loans to companies named Dai Hoang Phuong and Thinh Quoc, resulting in losses of hundreds of billions of Vietnamese dong and violated prevailing regulations.

In 2012, Dai Tin Bank was restructured and rebranded into VNCB and Pham Cong Danh became chairman of the bank’s management board.

Danh was later accused of devising scams to steal from the bank, including setting up fraudulent companies and fake documents to take out huge loans, which caused losses of over VND9 trillion. — VNS