A file photo of Dinh La Thang

Accordingly, Thang and six other defendants could face prosecution on two counts of intentionally violating state regulations on economic management, causing serious consequences and abusing position and power to misappropriating assets at PVN.

Thang was arrested on December 8 after having his parliamentary membership and all Party activities suspended.

Earlier in May, Thang had been removed from the Politburo and stripped of his post as Party chief of Ho Chi Minh City after being found to have committed multiple serious violations.

Investigative results show that in 2006, under a Prime Minister-approved plan to form PVN, the group was allowed to establish a new bank, in which PVN holds over 50% of its capital. In 2008, PVN bought shares of Oceanbank.

Although Thang, PVN chairman during 2008-2011, was reported on the poor performance of Oceanbank, he did not give any instruction to PVN’s board of directors and executive board to assess Oceanbank and the risks from the share purchase.

Without approval of the board of directors, Thang signed an agreement with Ha Van Tham, then Oceanbank chairman, on an VND800 billion (US$35.2 million) investment in this lender.

He also did not report the deal to the government as required by the law.

Thang’s violation against the government’s regulations and the Prime Minister’s instructions cost PVN the loss of its VND800 billion investment in Oceanbank.

The probe into economic mismanagement at PVN has led to the arrest of a string of senior executives, with the latest being Phung Dinh Thuc, the former general director of the group.  

Source: Nhan Dan - Bridge