Dinh La Thang receives 18-year prison sentence in OceanBank scandal

22:08 | 29/03/2018
Dinh La Thang has been sentenced to 18 years in jail and to pay back VND600 billion ($26.5 million) at the trial over PetroVietnam's capital contribution to OceanBank.
dinh la thang receives 18 year prison sentence in oceanbank scandal
Dinh La Thang and six defendants at the court

This afternoon, after ten days of trial and deliberation, the Hanoi People’s Court announced the sentences of Dinh La Thang and six other defendants. The court issued sentences for the charge of “intentionally violating state regulations on economic management and causing serious consequences” (Article 165 of the 1999 Penal Code):

Dinh La Thang

Former chairman of PetroVietnam

18 years of imprisonment and pay back $26.5 million

Nguyen Xuan Son

Former deputy general director of PetroVietnam

30 months of imprisonment and pay back VND15 billion ($0.66 million)

Ninh Van Quynh

Former chief accountant of PetroVietnam

7 years of imprisonment and pay back VND100 billion ($4.4 million)

Vu Khanh Truong

Former member of Board of Directors

5 years of imprisonment and pay back VND40 billion ($1.76 million)

Nguyen Xuan Thang

Former member of Board of Directors

22 months of imprisonment and pay back VND15 billion ($0.66 million)

Nguyen Thanh Liem

Former member of Board of Directors

22 months of suspended imprisonment and pay back VND15 billion ($0.66 million)

Phan Dinh Duc

Former member of Board of Directors

15 months of suspended imprisonment and pay back VND15 billion ($0.66 million)

Particularly, Ninh Van Quynh was sentenced to an additional 16 years of imprisonment for the charge of “asset embezzlement” (Article 280 of the Penal Code 1999).

According to the court, since September 2008, Dinh La Thang directed and made the decision to pour capital from PetroVietnam into OceanBank. He clearly knew the weak capacity of OceanBank but pressed ahead with the capital contribution without the approval of the prime minister.

Dinh La Thang committed numerous violations before reporting to the prime minister and relevant agencies. Other defendants named Vu Khanh Truong, Nguyen Thanh Liem, Nguyen Xuan Thang, Phan Dinh Duc (members of PetroVietnam’s Board of Directors), along with Nguyen Xuan Son and Ninh Van Quynh had acted on directions from Thang.

He did not wait for the approval of the prime minister before the three capital contributions. Therefore, Dinh La Thang had the overall power at PetroVietnam in the management, guaranteeing, and developing the state’s capital, but he decided to make an investment in Oceanbank against regulations.

Regarding OceanBank’s financial status, the report of the State Bank of Vietnam’s Inspectorate stated that OceanBank was in the red during the time of PetroVietnam’s capital contribution.

“The annual financial report of this bank is not correct and portrayes an entirely flawed picture of the bank's business results. The profit PetroVietnam gained in accordance with OceanBank’s financial report is fake,” stated the sentence.

The sentence also confirmed that PetroVietnam had lost VND800 billion ($35.2 million) due to the defendants’ violations.

According to the court, during his time as chief accountant, Ninh Van Quynh illegally received VND20 billion ($0.88 million) from Nguyen Xuan Son.

The violations of Vu Khanh Truong resulted in damages worth of VND400 billion ($17.6 million), while those of Nguyen Xuan Son amounted to VND100 billion ($4.4 million). Nguyen Xuan Thang and Nguyen Thanh Liem caused VND100 billion ($4.4 million) in damages each to PetroVietnam.

Two months ago, Dinh La Thang was sentenced to 13 years of imprisonment in the case of PetroVietnam pouring capital into PetroVietnam Construction Corporation (PVC).

By Nguyen Huong

Based on MasterCMS Ultimate Edition Ver 2.8 2018