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Agence France-Presse

A former banking magnate and 50 others went on trial in Vietnam Monday over a multimillion dollar fraud at a major private bank, as the communist nation cracks down on corruption in the sector.
Authorities have vowed to clean up an industry plagued by favouritism and dodgy loans - part of a broader drive against corruption in the country.
In the latest trial the ex-chairman of Ocean Bank, Ha Van Tham, is accused of illegally approving loans worth US$23 million in 2012, ultimately leading to the bank’s demise and stripping him of his status as one of the country’s richest men.
Tham and 50 other bankers and businessmen, most of whom worked at Ocean Bank, face various charges related to the illegal loans in the 20-day trial that opened Monday.
Some face the death penalty, according to the lengthy indictment.
The trial involves a record 50 defence lawyers and more than 700 witnesses, and is the second time the accused have appeared after a March trial was postponed for further investigation.
Tham is accused of approving the loan to the Trung Dung real estate company without proper collateral.

The head of the real estate company, Pham Cong Danh, is currently in jail after a separate conviction of economic mismanagement.
Ocean Group, which includes real estate and hotel subsidiaries, enjoyed a meteoric rise after its founding in 2007, and was valued at $500 million in 2013 under Tham’s stewardship.
But after Tham was arrested in 2014, most bank branches shut and the State Bank of Vietnam, the central bank, acquired Ocean Bank for $0.
Ocean Group is still active in real estate and hotels and services and was valued at about $3.5 million in 2016, according to its website.
Vietnam has already jailed dozens of bankers in other high-profile banking cases, though some say corrupt officials should be targeted as part of the crackdown.
“In economic cases, only enterprise managers and owners are put on trial, not policymakers or state officials... punishment of party and state (officials) is not strong enough,” economic law expert Nguyen Viet Khoa said.
In September last year 36 former Vietnam Construction Bank employees were given jail terms of up to 30 years, after they were accused of secretly withdrawing millions of dollars from clients’ accounts to use for loans or keep for themselves.
Bad debts have long plagued the banking industry. They make up some eight per cent of outstanding loans, according to the state bank, though experts say the real number could be far higher.
Authorities have also targeted other sectors in their anti-corruption drive, though analysts say convictions are often driven by political infighting rather than a genuine commitment to reform.
This month Germany accused Vietnam of kidnapping Trinh Xuan Thanh, a former oil executive accused of corruption, from a Berlin park.
Officials in Vietnam said he turned himself over to police in Hanoi voluntarily.


Banking tycoon among dozens on trial in Vietnam for approving dodgy loans

Former Ocean Bank chairman Ha Van Tham, 44, stands trial at the People's Court in Hanoi. Photo: AFP

Former Ocean Bank CEO Nguyen Xuan Son (C, standing) stands trial along with former Ocean Bank chairman Ha Van Tham (2nd R, seated on first row) at the People's Court in Hanoi on August 28, 2017. A former banking magnate and 50 others went on trial in Vietnam on August 28 over a multi-million dollar fraud case at a major private bank, as the communist nation cracks down on corruption in the scandal-tainted sector. / AFP PHOTO / Vietnam News Agency / VIETNAM NEWS AGENCY

Germany angry at Vietnam for reported cold war-style abduction of businessman

A store employee (R) watches a screen showing Trinh Xuan Thanh speaking in a clip aired by Vietnam's state television VTV, in Hanoi on August 4, 2017. Portrayed by the Vietnamese government as a Lexus-driving tycoon who flaunted his wealth while costing the state millions of dollars, Trinh Xuan Thanh fled the country as he fell under the cross hairs of a corruption crusade by communist authorities. Photo: AFP

Trinh Xuan Thanh, a former official at state oil company PetroVietnam, sits on a park bench in Berlin in this undated photo. Vietnam's state television on August 3, 2017 broadcast images of the former state oil executive saying he had turned himself into authorities in the southeast Asian country, after Germany accused Vietnam of having kidnapped Thanh who was seeking asylum. REUTERS/dpa/picture alliance NO THIRD PARTY SALES. NOT FOR USE BY REUTERS THIRD PARTY DISTRIBUTORS FOR EDITORIAL USE ONLY. NO RESALES. NO ARCHIVES.

Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang speaks to reporters during a regular press briefing in Hanoi, Vietnam, Thursday, Aug. 3, 2017. Hang said Vietnam regretted comments by the German Foreign Ministry accusing Vietnamese intelligence services of kidnapping a former Vietnamese oil executive who's wanted back home on embezzlement charges. (AP Photo/Tran Van Minh)

Vietnam Politburo member sacked over 'serious mistakes' when head of energy giant

US Secretary of State John Kerry, left, is seated with Dinh La Thang during their meeting, in Ho Chi Minh City in January. Dinh been sacked,accused of mismanagement during his time running the country’s biggest energy giant more than six years ago. Photo: Reuters

Workers operate a pipeline at the newly built PetroVietnam's largest petrol port-station at Nha Be district in Ho Chi Minh-City on 19 December 2002. The petrol port-station is capable of receiving 25,000 tonne oil ships. Vietnam produces annually some 20 million tons of crude oil but due to lack of refining facilities the country has currently to import petrol needed for domestic use. AFP PHOTO

Vietnam arrests tycoon for lending fraud

Ha Van Tham is suspected of bank fraud. Photo: SMP

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Ex-chairman of Ocean Bank Ha Van Tham was one of Vietnam’s wealthiest men before his arrest
