Ho Chi Minh City Police has decided to prosecute three officials of the Vietnam Bank for Agriculture and Rural Development (Agribank) on April 20, for allegedly violating regulations on lending schemes for credit institutions.
The three Agribank officials include Ngo Duc Tai, deputy head of the credit department at Tan Binh District branch, Vo Duc Hung, former head of the assessment department at Tan Binh District branch and Nguyen Minh Hoa, an internal inspector at the bank branch.
According to an initial investigation, Hung did not check loan documents of Cat Phuong Nam Co.Ltd and even though he knew that the company did not meet Agribank loan requirements, he still approved a loan of VND43 billion.
Tai agreed to lend T.H.T., father of Tran Huynh Nghia, director of Cat Phuong Nam Co.Ltd., money from the bank, despite T.H.T. having incomplete loan documents. Nghia is now under arrest.
Hoa was assigned to inspect business activities of the bank in 2005. He knew that the Cat Phuong Nam Co.Ltd did not meet Agribank borrowing conditions but the branch leaders still agreed to lend the company VND21 billion without collateral. He did not report this to his managers.
This was irresponsible of Hoa for leading leaders in Tan Binh District bank branch to lend money to Cat Phuong Nam and causing the bank a loss of VND120 billion.