Currently serving a life sentence, this time, Mr. Tran Phuong Binh, former General Director of Dong A Bank, continues to be prosecuted for his involvement in causing losses of more than VND 5,500 billion of Dong A Bank (DAB).
The Supreme People’s Procuracy has just issued an indictment against former General Director of Dong A Bank Tran Phuong Binh and 7 accomplices for violating regulations on lending in activities of credit institutions.
According to the allegation, during the period from 2007 to 2013, Mr. Tran Phuong Binh was the General Director of Dong A Bank (DAB), Vice Chairman of the Board of Directors and Chairman of the ADB Credit Council.
This allegation said that Mr. Binh knew that the group of M&C companies did not have the financial ability to pay for business activities and repay the debt to DAB.
However, Mr. Binh still agreed for Mr. Phung Ngoc Khanh (former Chairman of the Board of Directors and General Director of M&C Company) to make a false profile, use legal entities for many companies that are not eligible to borrow capital from DAB, use the loan to debt repayment and DAB guarantees payment of bonds contrary to the provisions of the Law.
The former General Director of DAB Bank directed the implementation of violations of regulations on banking activities, lending money to M&C customers in contravention of the law, causing losses of more than 5,518 billion VND.
According to the indictment, Mr. Binh discussed and agreed with Mr. Phung Ngoc Khanh to organize false records and business plans to borrow capital from DAB; directed Nguyen Thi Ngoc Van, former Deputy General Director, Vice Chairman of Credit Council of Dong A Bank; Nguyen Duc Tai, former Director of DAB Exchange and the defendants, who are DAB officers, did not appraise the loan documents and collateral, and made a request for approval for 5 companies in the M&C group to borrow VND 1,680 billion. , for Mr. Khanh to use the loan for the wrong purpose.
Mr. Binh also guaranteed payment of bonds (code MC_BOND2009) with An Binh Bank, by the time M&C Company could not repay the debt to An Binh Bank, DAB had to lend 2 loans to M&C Company, totaling more than 146 billion VND. for Mr. Khanh to use to pay the principal and interest of the above bond lot.
According to the Supreme People’s Procuracy, Mr. Binh must be responsible for the entire amount of more than 5,518 billion VND caused by his and his accomplices’ criminal acts.
Before that, Mr. Binh was repeatedly “convicted” for mistakes related to the loss of money of ADB.
Most recently, in November 2022, the High People’s Court in Ho Chi Minh City sentenced Mr. Tran Phuong Binh to life in prison for abusing his position and power to appropriate property; 20 years in prison for violating regulations on lending in credit institutions.
Previously, in June 2022, the Hanoi People’s Court sentenced Mr. Tran Phuong Binh to 10 years in prison for violating regulations on banking activities and other activities related to banking activities.