The Vietnam Development Bank's Minh Hai branch in the southernmost province of Ca Mau. Photo: Tuoi Tre
Police with the Ministry of Public Security detained three officials from the state-owned Vietnam Development Bank Tuesday for alleged economic mismanagement.
Trinh Tuan Man, former director of the bank’s Minh Hai branch in the Mekong Delta province of Ca Mau, Huynh Quang Xuan, chief of credit and Tran Thi Oanh, credit staff are being investigated on charges of ““intentionally violating state regulations on economic management, causing serious consequences,” police said without elaborating.
Former deputy director Vu Van Quang and two deputy chiefs of credit -- Phan Thanh Toan and Phan Thanh Hai -- also face investigations but are currently out on bail.
The Minh Hai branch of the Vietnam Development Bank is located in the southernmost province of Ca Mau.
Police said they raided the officials’ houses and seized some evidence.
Initial reports from police said that the bank, then the Investment and Development Support Fund, lent thousands of billions of dong to seafood processors and exporters at low interest in 1999.
The payment terms for the companies ranged from 5 to 10 years but the bank failed to reclaim the debts as most of the firms misused the loans, made losses, and went on the verge of bankruptcy.
The debt-laden companies include Ngoc Sinh owing VND290 billion (US$13.8 million), Nhat Duc owning VND176 billion ($8.3 million) and Viet Hai owing VND118 billion ($5.6 million).