Another Agribank official arrested in loan scam
Print 
The Ho Chi Minh City police arrested Monday a deputy director in the Bank for Agriculture and Rural Development of Vietnam (Agribank) who was allegedly the kingpin in the loan fraud that has caused losses of billions of dong.
They said that in April 2009 Nguyen Huu Long, deputy director of the bank’s branch No. 3 in District 3, granted a loan of VND39 billion (US$2 million) for Xuan Lan Services Limited Company, which mortgaged a house in Tan Phu District.
But when the company failed to repay at the end of 12 months, he secured a loan of VND40 billion loan for Trong Bang Trade and Services Limited Company based in District 11, and used the money to pay off the earlier loan.
He will be charged with “violating loan regulations.”
Last month the police had arrested two of Long’s subordinates, Dao Phuong The, chief of the branch’s business planning office, and Huynh Trung Hieu, credit officer.
They said the two knew that the same house was used as security for the second loan but ignored it.
Shockingly, the house papers were found to be forged.
Hieu was also charged with not verifying the financial status of the first firm, Xuan Lan, which had become at the time it got the loan.
As for Trong Bang, it used a fake steel trading contract to get the loan.
The officials said they were ordered to grant the loans by Long.
The police are investigating.
