Former bank director sentenced to prison for illegal lending

On September 14, the People's Court of Phu Yen province opened a trial of defendant Nguyen Cong, former Director of the Joint Stock Commercial Bank for Investment and Development of Vietnam - Phu Yen Branch, Chairman of the Credit Council (abbreviated as BIDV Phu Yen) and his subordinates for the crime of violating regulations on lending in the operations of credit institutions as prescribed in Clause 3, Article 179 of the 1999 Penal Code.

Defendant Nguyen Cong at trial.

In this case, Nguyen Thanh Hieu, Director of Hieu Anh Company, was tried for the same crime.

Accordingly, the Trial Panel declared that all defendants in the case were guilty of "Violating regulations on lending in the activities of credit institutions" as prescribed in Clause 3, Article 179 of the 1999 Penal Code.

The trial panel sentenced Nguyen Thanh Hieu, Director of Hieu Anh Company, to 5 years in prison, Nguyen Cong (former Director, Chairman of BIDV Phu Yen Credit Council) to 2 years in prison. Nguyen Van Tuyen (former Deputy Director of BIDV Phu Yen) and Nguyen Phu Phong (former Head of Customer Relations Department 1, BIDV Phu Yen) were sentenced to 1 year and 6 months in prison but the sentence was suspended. Le Tan Duc (former Deputy Head of Risk Management Department of BIDV Phu Yen) was sentenced to 1 year in prison.

8 defendants at trial.

The defendants: Nguyen Duy Sinh (former Deputy Director of BIDV Phu Yen); Nguyen Dai Hoa (former Acting Head of Credit Management Department of BIDV Phu Yen) and Vo Hong Phong (former Officer of Customer Relations Department 1 of BIDV Phu Yen) were exempted from prison sentences by the Trial Council.

The defendants in this case must be jointly responsible for compensating the entire amount of damages to the Joint Stock Commercial Bank for Investment and Development of Vietnam - Phu Yen Province Branch.

According to the indictment of the People's Procuracy of Phu Yen province, despite knowing clearly that the loan plan did not meet the prescribed conditions and was not feasible, BIDV Phu Yen officials still agreed to value the collateral, which was the land use right, at more than 14 times higher than the land price frame issued by the locality, and prepared documents and procedures for Hieu Anh and Tran Ngoc Hung Companies to borrow capital, causing a total loss of more than 33.6 billion VND to BIDV Phu Yen.

Nguyen Gia

Source: https://vtc.vn/cho-vay-von-trai-quy-dinh-cuu-giam-doc-ngan-hang-lanh-an-tu-ar820037.html