Sign up | Log in



Home  >>   Daily News  >>   Vietnam News  >> Economy  >> ACB's Kien manipulated legal loopholes
NEWS UPDATES Asean Affairs   15 August 2013  

ACB's Kien manipulated legal loopholes

Vietnam:The People's Police newspaper has outlined how banking tycoon Nguyen Duc Kien took advantage of loopholes and was powerful enough to direct both the chairman and general director of the Asia Commercial Bank, despite not being on the bank's management board.

The article came after in the case, saying Kien contributed a huge amount of capital to ACB and became a major shareholder in 1993. He then took the position of Deputy Chairman of the bank's Management Board from 1994 to 2008.

Possessing good knowledge of finance and banking operations as well as legal loopholes, he was fully aware of Vietnamese regulations that would limit the amount he could loan ACB, as well as the ramifications if he retained cross ownership in other commercial banks and private businesses while remaining a board member. He found a way to increase his power over the bank.

Kien withdrew from ACB's management board and then established five companies including Asia Financial Group Joint-Stock Company (AFG), ACB Investment JSC (ACBI), Aci-Hanoi Co Ltd (ACI-HN) and B&B Joint Stock Company (B&B). Within the firms, he played the role of management board chairman on four companies - B&B, AFG, ACBI and ACI – as well as Chairman of ACI-HN's Members Council.

To retain his influence and keep power so that he could direct ACB operations, Kien asked the management board to establish the bank's founder council and approve its working regulation before he withdrew.

In fact, this council was not under the organisational structure of a bank and was not recognised by law. It was merely a way for Kien to take advantage of legal loopholes.

The investigation agency showed that although these companies were not licensed to conduct financial business, Kien directed them to use more than VND9.7 trillion (US$462 million) mobilised and collected from their sales of bonds.

To raise ACB's share value, Kien and members of ACB's management board poured funds into ACB Securities Company (ACBS), which ACB bank owned 100 percent of equity, to buy ACB's shares.

The ACB provided VND1.5 trillion ($71.4 million) in funds for ACBS. ACBS then transferred the amount, along with its owner equity to ACI and ACI-HN with total sums of nearly VND1.56 trillion to buy more than 52.5 million ACB shares, causing ACB a loss of more than VND1.4 trillion.

According to the investigation agency, Kien also directed 19 ACB staff members to send nearly VND719 billion ($34.2 million) to VietinBank, which had then been usurped by former deputy manager of Risk Management Department of VietinBank branch in HCM City Huynh Thi Huyen Nhu and her accomplices.

The investigation has now concluded and Kien plus his seven accomplices were referred to the Supreme People's Procuracy of Viet Nam. Their imminent court date has to be announced.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    15  August 2013 Subsribe Now !
• Thai Stock Market Flood Relief Fund helps restore flood-hit historic sites Subcribe: Asean Affairs Global Magazine
• Thai bourse market report for July Asean Affairs Premium
• Thailand's plan to check Line messages gets flak
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Myanmar to build largest international airport
• MMK 410 billion loan approved for state owned enterprises
• ACB's Kien manipulated legal loopholes
• Electric car is still on the charger
Asean Analysis           15 August 2013 Advertise Your Brand
• Asean Analysis- August 15, 2013: The ups, downs of Brunei tourism
• Asean Weekly:The Biweekly Update 9 August 2013
Asean Stock Watch     14 August  2013
• Asean Stock Watch-August 14, 2013 

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand