| HANOI, June 9
HANOI, June 9 A Vietnamese court jailed a tycoon
and former banker for 30 years on Monday for his part in a
series of elaborate financial scams worth $1.1 billion that have
become one of the country's most high-profile banking scandals.
Nguyen Duc Kien, 50, founder of Asia Commercial Bank
, one of Vietnam's largest private lenders, was found
guilty of a litany of crimes along with seven co-conspirators
who used "sophisticated and cunning tricks" to deprive
depositors and companies of hundreds of millions of dollars.
"The defendants' activities manipulated the domestic
financial and money markets, badly affecting the monetary and
fiscal policies within the country," the court said in its
Vietnam's communist government says it is in the midst of a
shake-up to strengthen its beleaguered banking and financial
systems after a series of scandals that went undetected during
boom growth of 2003-2007, when the sector saw seemingly
Lax oversight and a spree of easy lending, much to state-run
firms, has left Vietnam with high levels of non-performing loans
that independent economists say could shackle growth for years
without aggressive counter-measures.
Kien, once owner of former Vietnamese soccer league
champions Hanoi ACB, was found to have illegally traded gold and
stocks totalling 21.5 trillion dong ($1 billion) and of evading
25 billion dong in tax through his six investment companies.
The court said the defendants exploited loopholes and loose
regulations by using fake documents and manipulating data on
credit growth, profits and equities values.
Top local steel firm Hoa Phat Group was defrauded
of 264 billion dong in shares due to the defendants' actions,
the court said. ACB, 15.4 percent owned by Standard Chartered
Bank, suffered losses of 1.4 trillion dong .
Former minister of planning and investment Tran Xuan Gia,
ACB's chairman at the time of the scandal, was also indicted in
the case, but his hearing has been suspended due to poor health.
Gia, 75, is fatally ill, according to his lawyer.
The silver-haired Kien denied all allegations and requested
more time to prove his innocence. The judges said Kien was given
a tough sentence because he failed to tell the truth.
In his final statement a week ago, Kien alleged there were
irregularities going on in many of Vietnam's lenders. He even
gave detailed advice to the court about how to restructure the
banking sector to prevent future embezzlement.
The ratio of bad debt in the Southeast Asian country is
debated, with the State Bank of Vietnam, the central bank,
putting last year's figure at 3.63 percent, compared with an
estimate of about 15 percent by Moody's.
Vietnam has an asset management firm it says has bought 45.6
trillion dong in bad debt. It has been operating since July last
year but has yet to announce a plan about what it would do with
the toxic assets it has bought.
($1 = 21,185 dong)
(Editing by Martin Petty)