Agro firm chief arrested for abuse of subsidized loan program

By Mai Tram, Thanh Nien News

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Nguyen Huynh Dat Nhan, director of Tay Nam Agro-Fisheries Company, was arrested on June 16. Photo: Mai Tram Nguyen Huynh Dat Nhan, director of Tay Nam Agro-Fisheries Company, was arrested on June 16. Photo: Mai Tram

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The Can Tho city police Thursday arrested the director of an agro-fisheries company for allegedly fraudulently obtaining soft loans worth billions of dong from a bank since 2012.
Nguyen Huynh Dat Nhan, 39, of Tay Nam Agro-Fisheries Company is being investigated for “swindling to appropriate property,” the police said.
Under a 2010 central government program, to agro-products companies can get interest-free loans for two years for buying agricultural products and selling farming machines to farmers.
From the third year onward, the interest in 50 percent subsidized.
In 2012 Tay Nam obtained loans of VND259 billion (US$11.6 million) from Agribank’s Can Tho branch, but instead of using the money as stipulated, Nhan used it to buy land and other properties and build several houses.
He also transferred an undisclosed sum of money to Tan Tien Company, owned by his friend Pham Tuong Thi, 36, which later deposited the amount in Agribank Can Tho.
Thi was arrested on Thursday, also for swindling.
Agribank discovered the fraud in 2014 and ordered its Can Tho branch to collect interest from Tay Nam Company.
The bank said the company would have to pay interest of more than VND60 billion ($2.69 million).
The branch is also under the police scanner for credit violations related to the case.

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