'Life sentence too harsh': former SCB chairman

The 62-year-old told the People's Court of Ho Chi Minh City on Thursday afternoon: "I have not been able to sleep since I heard the recommended sentence. My parents at home must be crying their eyes out."

Dung is accused of approving 404 loans to property developer Van Thinh Phat’s chairwoman, Truong My Lan, and her subordinates between 2013 and 2022, causing losses of VND213.9 trillion (US$8.62 billion) to the bank.

The prosecutors have sought a life sentence for him on the grounds that he repeated his crimes and caused grave consequences.

His lawyer said the sentence would be "unfair" since Dung had never met directly with Lan nor received a direct order from her, while other executives such as former CEO Nguyen Phuong Hong (who is deceased) and former acting CEO Truong Khanh Hoang had been the ones collaborating with Van Thinh Phat counterparts for loans.

Dung’s approvals were purely administrative in nature since the loans had been disbursed even before he signed the papers, the lawyer said.

Another former CEO, Vo Tan Hoang Van, said that during his tenure SCB had to borrow Lan’s assets to restructure, and everyone at the bank thought she was the "guardian" of the bank and had to follow her directions.

Former SCB CEO Vo Tan Hoang Van seen at the People's Court of Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Van is accused of approving 638 loans between 2013 and 2020, causing losses of VND161 trillion to SCB.

He said he had designated three departments to handle just Lan’s loans based on Hong’s suggestion to keep track of the loans and reduce expenses and not to hide wrongdoing.

All data was reported to the State Bank of Vietnam, he said.

"I seek leniency so that I can return to my family and continue to contribute to the development of society."

Hoang and former deputy CEO Tran Thi My Dung also pleaded for leniency.

Prosecutors have recommended 19-20 years for them for embezzlement.

They have recommended the death sentence for Lan for committing severe crimes over a long period and causing irrevocable consequences.

From 2012 to 2022 Lan and her accomplices obtained 2,500 loans worth more than VND1 quadrillion ($44 billion), accounting for 93% of the bank’s total lending during the period.

She is accused of causing losses of VND498 trillion.