Officers at the Ministry of Public Security on Monday arrested the former branch director of a subsidiary of the state-owned Vietnam Bank for Agriculture and Rural Development (Agribank) on suspicion of credit mismanagement.
Pham Nhat Kieu, 51, the former director of the South Saigon branch of the Agribank Finance Leasing Company No. 2 (ALC2), was arrested for "intentionally violating State regulations on economic management, causing serious consequences".
Police searched Kieu’s residence the same day.
Le Manh Dung, 64, the former deputy director of the branch, was placed under house arrest for the same charge.
According to police, Kieu and Dung signed a loan contract worth VND33 billion (US$1.55 million) with Phuong Mai Transport and Forwarding Services Company in late 2007.
The company was found ineligible for the funds, they said.
The pair’s act caused a loss of more than VND56 billion ($2.63 million) to ALC2, according to police.
In September, Vu Quoc Hao, 59, former director of ALC2, was sentenced to death by the HCMC People’s Court for embezzlement.
Nguyen Van Tai, former deputy director of ALC2, was sentenced to life for his role in the case.
Four others at ALCII were sentenced to between 15 and 20 years in jail.