Ho Chi Minh City police Saturday arrested the director of an Agribank branch to investigate his involvement in a loan scam that inflicted losses of VND40 billion (US$2 million) on the bank.
According to the police, between April 2009 and June 2010, Doi Sy Thuy, director of Agribank's branch in District 3, approved documents to let two companies borrow a total of VND79 billion though their financial capacities had yet to be assessed.
This helped Tran Quoc Dan, owner of the Trong Bang Transport Company, to pocket VND40 billion, police said. The other firm that received the loan was the Xuan Lan Trade and Services Company owned by Dan's nephew.
Earlier, the police had arrested three officials from the branch: vice director Nguyen Huu Long, credit department head Dao Phuong The, and staff Huynh Trung Hieu to probe their alleged involvement in the scam.