Can Tho police are looking into allegations that a branch of state-run lender Agribank in the southern city has illegally offered a loan of nearly VND290 billion (US$13.1 million) to a company at no interest.
The company, whose name has not been released, is based in the nearby Hau Giang Province. It secured the zero-interest loan on October 15, 2010, Tuoi Tre quoted Can Tho police chief Tran Ngoc Hanh as saying.
The company applied for the loan under a government’s policy that offered financial support to agriculture and fishery businesses facing extreme difficulties.
Police said the company managed to obtain the credit even though it did not have business activities in the agricultural sector.
Agribank, or Vietnam Bank for Agriculture and Development, is also involved in another major corruption case. Prosecutors last October filed charges against 18 executives and employees of the state-owned bank for abetting five foreigners in a massive loan scam that resulted in a VND2.75 trillion ($120.8 million) loss.
The 18 Vietnamese include Agribank's former CEO Pham Thanh Tan and his deputy Kieu Trong Tuyen. The foreign suspects are now wanted.