Bank official arrested for invalid loans

An Agribank official on Monday was held in custody for violating loan regulations, with regard to credit organizations, in Ho Chi Minh City.

Nguyen Huu Long (C) is taken in custody in HCM City on January 10 (Photo: Thanh Nien)

HCMC police also searched the house and office of Nguyen Huu Long, deputy director of the Bank for Agriculture and Rural Development’s branch 3.

It is alleged that in 2009, Long knew the Xuan Lan trading and service company was not competent with being provided with a loan. However, he still gave permission to lend the company a total amount of VND39 billion (US$2 million) in a 12 month period.

By mid 2010, the company was not able to pay off the loan, as well as interest on the loan.

Long should have followed the required regulations to proceed against the company and sell its mortgage house at 368 Nguyen Son, Phu Thanh Ward, in Tan Phu District.

Nevertheless, he instructed Dao Phuong The, head of the planning department and Huynh Trung Hieu, a credit employee, to falsify documents so that the Trong Bang transport service company could put the house for mortgage to get VND40 billion in loan.

It is alleged that the aim was to help the Trong Bang Company pay off the debt for the Xuan Lan Company.

On December 24 last year, Dao Phuong The and Huynh Trung Hieu were also taken into custody for breaking lending violations regarding credit organizations.

By Ai Chan – Translated by Bach Lien

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