The Investigation Agency under the Ministry of Public Security has completed investigation over a wrongdoing case at Mekong Housing Bank (MHB) and proposed to prosecute 17 offenders for abusing their positions and authority while being on duty and irresponsibility causing serious consequences at the bank and MHB Securities Company.
Of the offenders are former senior leaders of MHB which has been merged into Bank for Investment and Development of Vietnam (BIDV). They include Huynh Nam Dung, former chairman of MHB; Nguyen Phuoc Hoa, former director general; Bui Thanh Hung, former deputy director general; Nguyen Van Thanh, former chief accountant; Lu Thi Thanh Binh, former director general of MHBS and her deputy Dang Van Hoa.
According to investigation conclusion, before merging into BIDV, MHB had its chartered capital of VND3,369 billion (US$149 million) with 91.26 percent of the funds being state capital.
On December 25, 2006, MHB established subsidiary MHBS, which Huynh Nam Dung contributed 8.12 percent chartered capital and Nguyen Phuoc Hoa contributed 1.24 percent.
In November 2010, internal audit at MHB uncovered that MHBS had experienced continuous losses and showed many wrongdoings in stock trading activities. The wrongdoings by Huynh Nam Dung and accomplices caused MHB a total damage of VND272 billion ($12 million).
The agency specified that the former chairman of MHB alone left a total state asset loss of VND300 billion including principal and interest.