HCMC – Ta Ba Long, former chairman of GPBank, and his accomplices have allegedly violated State regulations on economic management, causing a total loss of up to VND961 billion, Lao Dong website reported.
Local police have indicted Long and Pham Quyet Thang, former general director of the lender, for violating rules on bank operations. Besides this, eight other accomplices, who are former leaders and officers of the bank, have been prosecuted for the same charge.
Three others have been prosecuted for frauds to appropriate properties. According to investigators, the Saigon M&C high-rise building developed by Saigon One Company was designed to have functions such as office building, shopping center and condos for lease. However, the apartments were not allowed for sale.
To use the condos of the project for illegal capital mobilization, Phung Ngoc Khanh, former chairman of Saigon One and general director of M&C Joint Stock Company, signed a contract to distribute the flats, then gave the right to transfer and sell the products to M&C Company.
Despite not having the ownership right, Khanh colluded with Nguyen Trong Hieu, ex-chairman of Saigon Power Development Joint Stock Company, to make six counterfeit condo trading contracts to borrow over VND300 billion from GPBank.
Then, Hieu met Long and Thang to propose a VND300-billion loan for M&C Company. The two ex-bankers agreed, but asked to get 10% of the credit in kickbacks.
However, other GPBank leaders rejected the credit application, after finding out that the building had been mortgaged to take out loans at various banks. Then, Hieu and Khanh met the bankers again to make more fake documents for the six apartments, proving that they were sold to the power firm. Consequently, the bank agreed to disburse VND305 billion.
After the credit was transferred to the account of M&C Company, Khanh withdrew the money and used for personal purposes.
As of August 25, violations of the former leaders had caused the combined loss of VND961 billion to the bank, including VND305 billion worth of principal and VND656 billion worth of interest sums and overdue interests.