Former State Bank inspection chief prosecuted in Van Thinh Phat scam

Do Thi Nhan, former head of the State Bank of Vietnam's banking inspection and supervision department II, has been prosecuted for alleged wrongdoings related to the Van Thinh Phat scandal.

Major General Nguyen Van Thanh, deputy director of the Ministry of Public Security's department for investigation of crimes related to corruption, economy and smuggling (C03), told local media on Tuesday that Nhan has been prosecuted for abusing her position and power while on duty.

C03 also prosecuted four other people from an inter-sectoral inspection team under the banking inspection and supervision department.

According to C03, Nhan and members of the inspection team falsely reported inspection results to SBV leaders, leading to the untimely supervision of Saigon Commercial Bank (SCB). "This is a serious violation," said Major General Thanh.

The central bank last October placed SCB under special control over stability concerns. Previously, many SCB branches and transaction offices recorded a run on deposits due to concerns about the bank’s financial health.

C03 has prosecuted 32 people in two cases related to violations at HCMC-based property developer Van Thinh Phat Group.

Last October, the first four people prosecuted and detained were Truong My Lan, chairman of Van Thinh Phat Group; Truong Hue Van, general director of Windsor Property Management Group JSC; Nguyen Phuong Hong, assistant to Van Thinh Phat Group; Ho Buu Phuong, former chairman of Tan Viet Securities JSC and former deputy general director in charge of finance of Van Thinh Phat Group.

All the four people were investigated for fraud to appropriate trillions of Vietnamese dong (VND1 trillion = $42.54 million) from people in issuance and trading of bonds in the period of 2018-2019.