The Ministry of Public Security has arrested the former CEO of Global Petrol (GP) Bank and a company director for causing damages of more than VND5.5 trillion (US$246.7 million) at the bank since 2011.
Pham Quyet Thang of GP Bank and Nguyen Ngoc Nam, director of Sao Bac Company, are being investigated on charges of “violating state economic regulations causing serious consequences,” the police said.
Police also put Nguyen Anh Dung, the bank’s former chief accountant, and Hoang Cong Hop, chairman of Thanh Trung Company, under home arrest for investigation.
Thang, who worked as CEO from 2009-2015, and the others were accused of colluding with the bank’s former chairman Ta Ba Long and his deputy Doan Van An, who were arrested last year.
Preliminary investigation found that Sao Bac and Thanh Trung were actually Long and An’s backdoor companies that owed VND3.9 trillion in bonds to EVN Finance JSC.
The duo instructed Thang and Dung to sign documents to illegally transfer the amount to the accounts of the two companies for payment.
The companies were later unable to pay the money.
Investigators said relevant damages were VND5.5 trillion, including interest of VND1.6 trillion accumulated since 2011.
Long and An were arrested soon after the central bank took over GP Bank.
The troubled lender, which was the smallest of Vietnam's nearly 40 partly private lenders by assets, failed to restructure its operations, prompting the central bank to step in, according to the State Bank of Vietnam.