{"id":32010,"date":"2014-05-31T22:10:31","date_gmt":"2014-05-31T15:10:31","guid":{"rendered":"https:\/\/anvilaw.com\/vi\/?p=32010"},"modified":"2022-07-07T22:06:33","modified_gmt":"2022-07-07T15:06:33","slug":"560-mogul-kienbank-case-a-lesson-in-conflict-of-interest","status":"publish","type":"post","link":"https:\/\/anvilaw.com\/vi\/560-mogul-kienbank-case-a-lesson-in-conflict-of-interest\/","title":{"rendered":"560. \u00a0\u201cMogul Kien\u201dBank Case: A Lesson In Conflict Of Interest"},"content":{"rendered":"(BT) &#8211; Tran Xuan Gia was recognized by state management agencies as president of Asia Commercial Bank (ACB), but this was on paper only. The real influential figure was Nguyen Duc Kien, dubbed \u201cMogul Kien\u201d, who has been prosecuted for his economic crimes.<\/p>\n<p>Only when Tran Xuan Gia, Nguyen Duc Kien and several other senior executives of ACB were arrested two years ago did people realize that Gia had been serving only as a so-called \u201chired president\u201d.<\/p>\n<p>Analysts say there are more and more hired presidents at banks. Vietnamese laws allow a bank to have an \u201cindependent chair of board of directors\u201d, or someone who does not hold any shares of the bank.<\/p>\n<p>In most cases, the banks\u2019 real owners manage their banks\u2019 operations, but in other cases, the leading positions are granted to \u201chired workers\u201d who are former officials of state agencies or ministries.<\/p>\n<p>After two years of working as chair of Sacombank\u2019s board of directors, Pham Huu Phu has resigned and been replaced by Kieu Huu Dung, a well-known name in the banking sector.<\/p>\n<p>Dung spent two years before working as the deputy chair of the bank. And prior to that, Dung was the director of the State Bank\u2019s Department of Banks and Non-bank Credit Institutions.<\/p>\n<p>Dung, who holds the post of Sacombank president, does not hold any Sacombank shares.<\/p>\n<p>And in another case, Cao Sy Kiem, former governor of the State Bank, has become the president of Dong A Bank, while Nguyen Doan Hung, former director of the central bank\u2019s Foreign Exchange Department and former deputy chair of the State Securities Commission, has been appointed to the post of the independent member of Techcombank\u2019s board of directors.<\/p>\n<p><em>Lawyer Truong Thanh Duc, chair of the ANVI law firm, noted that it is not by chance that bankers hire former high-ranking officials. By doing so, commercial banks can take full advantage of the officials\u2019 image, prestige and relationships.<\/em><\/p>\n<p><em>Duc said the growing tendency of putting former high-ranking officials in the posts of business executives has raised concerns that it could adversely affect the banking system.<\/em><\/p>\n<p><em>\u201cThe banks that employ high ranking officials will have advantages over others, which can help them win over their rivals,\u201d Duc explained. \u201cBut what will happen if top secrets are disclosed?\u201d<\/em><\/p>\n<p><em>In theory, independent members of the boards of directors are supposed to help protect small shareholders\u2019 benefits. However, Duc said that there was no such independent member in the true sense of the word.<\/em><\/p>\n<p><em>\u201cIt is not the small shareholders who get the independent members to protect them. It is the big shareholders who hire the members. Therefore, the hired workers must work for the benefits of those who pay them,\u201d Duc said.<\/em><\/p>\n<p><em>A banking expert, in a talk with Infonet, warned that such \u201cpuppet bank leaders\u201d could damage the bank restructuring process.<\/em><\/p>\n<p><em>\u201cDuring restructuring, banks can replace their presidents or CEOs. But this may not help because the \u2018real\u2019 owners of the banks would remain the same and their viewpoints would remain unchanged,\u201d he explained.<\/em><\/p>\n<p><em>&#8212;&#8212;&#8212;&#8212;-<\/em><\/p>\n<p><strong><em>Bussiness Times (<a href=\"http:\/\/businesstimes.com.vn\/banking-finance\/\">Banking-Finance<\/a>) 31-5-2014<\/em><\/strong><\/p>\n<p><em><a href=\"http:\/\/businesstimes.com.vn\/mogul-kien-bank-case-lesson-conflict-interest\/\">http:\/\/businesstimes.com.vn\/mogul-kien-bank-case-lesson-conflict-interest\/<\/a><\/em><\/p>\n<p><em>(223\/517)<\/em>","protected":false},"excerpt":{"rendered":"<p>(BT) &#8211; Tran Xuan Gia was recognized by state management agencies as president of Asia Commercial Bank (ACB), but this was on paper only. The real influential figure was Nguyen Duc Kien, dubbed \u201cMogul Kien\u201d, who has been prosecuted for his economic crimes. Only when Tran Xuan Gia, Nguyen Duc Kien and several other senior [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":32011,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[17,26],"tags":[],"class_list":["post-32010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-binh-luan-gop-y","category-legal-media"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>560. \u00a0\u201cMogul Kien\u201dBank Case: A Lesson In Conflict Of Interest - ANVI Law Firm<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/anvilaw.com\/vi\/560-mogul-kienbank-case-a-lesson-in-conflict-of-interest\/\" \/>\n<meta property=\"og:locale\" content=\"vi_VN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"[:vi]560. \u00a0\u201cMogul Kien\u201dBank Case: A Lesson In Conflict Of Interest[:] - ANVI Law Firm\" \/>\n<meta property=\"og:description\" content=\"(BT) &#8211; Tran Xuan Gia was recognized by state management agencies as president of Asia Commercial Bank (ACB), but this was on paper only. 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