| Former Governor of the State Bank Cao Sy Kiem has become a member of the board of directors of Dong A Bank |
Four years ago, the Asia Commercial Bank (ACB) introduced its board of directors after the shareholders’ meeting. The structure of the board of directors then caught a special attention, because it comprised of the members who were once high ranking government officials.
The 11-member board of directors of ACB then had two new faces: Tran Xuan Gia, former Minister of Planning and Investment, and Luong Van Tu, former Deputy Minister of Trade, which is now the Ministry of Industry and Trade.
The ACB’s decision about the board of directors was commented as a move towards the renovation, also partially because Tu and Gia were considered as “independent members of the board of directors,” an unfamiliar concept at that time in Vietnam.
The new feature in the bank’s structure was then applauded by shareholders, who expressed their confidence on the great contribution of the special shareholders to the bank’s operation.
It’s easy to find out what banks expect from the former high ranking government officials. The close relationship with government agencies of the former officials would help banks much in dealing with government-relating affairs and help bring more clients.
Following the ACB’s move, a lot of other enterprises have also invited senior officials of government agencies to work for them after the retirement. Especially, since late 2011, a lot of high ranking agency leaders have retired and joined the business circle.
In late March 2012, after many years of undertaking the post of the Chair of the Small and Medium Enterprises’ Association since the retirement, former Governor of the State Bank Cao Sy Kiem became an independent member of the board of directors of Dong A Bank.
Meanwhile, at the latest shareholders’ meeting of Eximbank, its shareholders was informed about the appearance of Le Duc Thuy, who was Governor of the State Bank of Vietnam, former Chair of the National Financial Supervision Council, as an advisor to the bank.
Sacombank’s shareholders were told that they may witness the presence of Le Xuan Nghia, former Deputy Chair of the National Financial Supervision Council, who has been invited to work as the advisor to the bank.
Thoi bao Kinh te Vietnam has quoted its sources as saying that another joint stock bank would show a new member of the bank, who was Deputy Minister of Trade and would undertake the post of the independent member of the board of directors.
Independent member of the board of directors is the model encouraged by the World Bank.
Analysts have predicted that this would be a tendency in Vietnam. Officials would choose that way, because this allows them to continue working and devoting their experience and knowledge to the national economy.
The working ability is not limited by the age. In the US, Alan Greenspan, after resigning the post of Chair of the Federal Reserves FED at the age of 80, still has been working with his company Greenspan Associates LLC.
Meanwhile, businesses well understand that the presence of the high ranking officials would bring a big advantage to them. Their names and titles at government agencies alone would help polish the images of businesses. Besides, their experiences and deep knowledge about policies, their good relationships with authorities would bring invaluable benefits. Source: TBKTVN