Finance

Vietnam businesswoman sentenced to death, central banker to life over bad credit

BANK LOAN FRAUD: In all 86 people, including Truong My Lan, her family members, SGN Bank directors, senior management, branch officers, central bank supervisors, other state audit and inspection bureau officers were jailed or fined or both./Picture Touitre Online Vidcap

Friday April 12, 2024 11:52 am

ECONOMYNEXT – A court in Vietnam has sentenced to death Truong My Lan, head of Van Thinh Phat property group who was also involved in restructuring a troubled bank, while sentencing three others to life imprisonment, including a central bank supervisor.

Lan, who was also a key shareholder of Saigon Commercial Bank, was sentenced to 20 years in prison for violating credit regulations, 20 years for bribing a State Bank of Vietnam (central bank) official, in addition to the death penalty, penalty for embezzlement, reports said.

Do Thi Nhan, former Director of bank supervision division II at the State Bank of Vietnam was sentenced to life for accepting bribes during a re-structure of three failed banks over a decade ago, which eventually emerged as Saigon Commercial Bank.

Vietnam suffered business failures and bad loans after an attempt at ‘stimulus’, which was fashionable after a US housing bubble broke, ended in a currency crisis in 2011 with the dong falling from 15,000 to 22,000 to the US dollar.

Lan protested her innocence, saying she invested in the bank and got friends to buy shares to bail it out at the behest of authorities, reports said.

Dinh Van Thanh, exp-Chairman of Saigon Commercial Bank, currently evading arrest, Bui Anh Dung, Chairman of the Board of Directors; Vo Tan Hoang Van, General Director were also sentenced to life imprisonment.

The current case blew up after property companies in Van Thinh Phat Group defaulted on corporate bonds issued during a Covid low interest period, leading to public protests, after rates were hiked in late 2022 to stop a currency crisis.

Several Vietnamese property firms got into trouble in 2022 after construction delays during Covid-19 which led to interest rate accumulation, delayed payments by buyers, and an eventual rate correction to stop a currency crisis in 2022, after forex reserves touched three months of imports due to rate cuts.

Court asked authorities to investigate corporate bond sales separately, as the current case dealt with loans from the Saigon Commercial Bank.

On March 27, Do Anh Dung, Chairman of Tan Hoang Minh group, was sentenced to eight years in prison, his son and Deputy General Manager Do Hoang Viet to three years by Hanoi People’s Court over corporate bond defaults, also over defaulted corporate bonds.

In the SCB case, the court also sentenced a series of central bank, credit regulatory agency and state audit office and government internal affairs officials for failure to carry out their work or negligence.

Court also recommended additional investigation of auditors of Saigon Commercial Bank, the government to re-examine the procedures for setting up joint stock companies (limited liability firms) after it was found that over 1000 companies had been incorporated with cross-holdings to get loans, some of which were inactive.

In all 86 persons were sentenced.

Court said Lan could appeal to the President of the Republic for the sentence to be commuted to life.

In 2003, Tang Minh Phung, director of Minh Phung and EPCO groups was sentenced to death after his businesses failed and could not repay loans from state banks.

His appeal was rejected by the President and he was executed by firing squad.

A pioneer exporter in footware and apparel in the early stage of Vietnam’s growth story, Phung was also bought down by property deals gone bad.

The following Central Bank and other state officials were sentenced in addition to Do Thin Nhan according to ThanhNhien portal.

1) Nguyen Van Hung, former Deputy Chief Inspector in charge of the Banking Inspection and Supervision Agency (under the State Bank), received 390,000 USD from Truong My Lan: 11 years in prison (translated)

2) Nguyen Thi Phung, Deputy Director of Banking Inspection and Supervision Department II, received 20,000 USD, 210 million VND, 1 watch, 1 bag, 1 scarf: 4 years in prison

3) Bui Tuan Khoa, Deputy Director of Banking Inspection and Supervision Department II, received 100 million VND: 3 years in prison

4) Vuong Do Anh Tuan, Head of the Inspection Department of the Banking Inspection and Supervision Department II received 20,000 USD, 2 shirts: 3 years suspended prison term

5) Tran Van Tuan, Inspector of the Department of Inspection, resolution of complaints and denunciations of the internal affairs and general economic sector (under the Government Inspectorate) received 6,000 USD, 40 million VND: 3 years in prison

6) Le Thanh Ha, Deputy Chief Inspector of State Audit, former Head of Bank Audit Department 1, State Audit Specialist VII received 14,000 USD, 100 million VND: 3 years in prison

7) Nguyen Van Thuy, former Deputy Head of the General Supervision Department, National Financial Supervision Commission received 21,000 USD, 60 million VND, 1 shirt, 1 T-shirt, 1 box of bird’s nest: 3 years in prison

8) Nguyen Tuan Anh, former civil servant of the Department of Inspection and Supervision of Domestic Credit Institutions (under the Banking Inspection and Supervision Agency, State Bank) received 100 million VND: 3 years in prison

9) Vu Khanh Linh, Deputy Head of the Joint Stock Commercial Bank Inspection Department (under the Department of Banking Inspection and Supervision II, State Bank) received 100 million VND: 3 years of suspended prison sentence

10) Truong Viet Hung, inspector of the Department of Inspection, resolution of complaints and denunciations of the internal affairs and general economic sector (under the Government Inspectorate) received 6,000 USD: 3 years in prison

11) Nguyen Duy Phuong, inspector of the Department of Inspection, settlement of complaints and denunciations of the internal affairs and general economic sector received 1,000 USD, 20 million VND: 2 years in prison

12) Nguyen Van Dung, Deputy Director of the State Bank Ho Chi Minh City branch received 400 million VND, 15,000 USD: 11 years in prison

13) Nguyen Thi Phi Loan, former Deputy Chief Inspector in charge of the State Bank’s Ho Chi Minh City Branch Inspection and Supervision Agency, received 470 million VND: 4 years in prison

14) Phan Tan Trung, Deputy Chief Inspector, Banking Supervisor, State Bank Ho Chi Minh City Branch received 1.1 billion VND: 7 years in prison

15) Vo Van Thuan, Deputy Chief Inspector, Banking Supervisor, State Bank Ho Chi Minh City Branch received 1.8 billion VND: 7 years in prison

16) Nguyen Tin, former Deputy Head of the Administrative Inspection Department, resolving complaints and denunciations and preventing corruption, Ho Chi Minh City Banking Inspection and Supervision Department under the State Bank of Vietnam Banking Inspection and Supervision Agency Receive 500 million VND: 3 years in prison (Colombo/Apr12/2024)

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Weather and Climate

Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Monday June 3, 2024 2:17 pm

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

Politics

UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

Monday June 3, 2024 1:59 pm

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

Accidents

300 of 100,000 trees in Colombo considered high risk: state minister

Monday June 3, 2024 1:05 pm

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)