Police have concluded that ex-banker Phạm Công Danh caused additional losses of more than VND6 trillion (S$360 million) in the second stage investigation into his case, solidifying the investigation's record as the biggest economic probe in Việt Nam's history.
With the previous indictment of causing VNĐ9 trillion of losses to the Việt Nam Construction Bank (VNCB), where Danh was the former chairman of the board, the 63-year-old man is now allegedly responsible for a stunning total of VNĐ15 trillion in bank losses.
Following the first trial on the VNCB case, in which Danh was sentenced for 30 years in prison, the police initiated another investigation into the trillion-loans made since 2012 between the VNCB and another three banks: the Sài Gòn Thương Tín (Sacombank), the Tiền Phong (TPBank) and the Việt Nam Investment and Development (BIDV).
The police on Tuesday announced that it finished its investigation, asking the Supreme People's Procuracy to prosecute Danh and his 23 partners in crime for deliberate breach of law.
According to the police, the ex-banker ordered his underlings to make up blank documents to turn more than VNĐ1.8 trillion of the VNCB into the collateral for an equivalent loan from the Sacombank. Danh spent the money to pay off some VNĐ1.7 trillion of debts for his six companies, while the rest was for personal use.
Using the same trick, Danh transited another VNĐ1.7 trillion of the VNCB to the TPBank for a loan to clear off debts of his Thiên Thanh corporation and other activities.
He also ordered 12 companies he established by him to make loans from the BIDV using more than VNĐ3 trillion of the VNCB as collateral assets.
The police found that Danh and his underlings caused a total loss of more than VNĐ6 trillion to the VNCB.
HCM City Civil Judgment Enforcement Department Head Vũ Quốc Doanh on Monday said that the amount of money needed to be retrieved in the Phạm Công Danh's case reached nearly VNĐ12 trillion. Of which, the department so far collected more than VNĐ5 trillion, accounting for about 40 per cent of the target.
Doanh said that the police managed to seize a large amount of assets during its investigation into the case.
At least 95 per cent of the losses are likely to be retrievable.