VietNamNet Bridge – The HCM City People’s Court on June14 sent a case related to fraud and irresponsible lending practices at the Central Sai Gon branch of the Vietnam Bank for Agriculture and Rural Development (Agribank) back to the People’s Procuracy for further investigation.

The HCM City People’s Court on June14 sent a case related to fraud and irresponsible lending practices at the Central Sai Gon branch of the Vietnam Bank for Agriculture and Rural Development (Agribank) back to the People’s Procuracy for further investigation.—Photo dantri.com.vn

In the case, Pham Van Chinh, former director of A Chau Company; Hoang Van Cuong, former director of ADN Company; and Do Minh Quang, foundation member of the ADN Company, were accused of “swindling and appropriating property”.

Other defendants, including former branch directors Pham Thi Mai Toan and Phi Thi Ong; former branch deputy director Do Thi Yen; and two bank officers, Nguyen Thi Thanh Van and Nguyen Thi Thuy Trang, were prosecuted on the charge of “violating regulations on lending activities of credit institutes” and “lacking responsibility causing serious consequences”.

According to the indictment, American national Hoang Tien Dzung founded six companies based in HCM City and hired people to work as company directors in order to borrow money from the bank.

The companies reportedly failed to pay the bank loan interest.

Subsequently, in November 2009, Dzung falsified a project to get a loan of VND90 billion (US$4 million) to help the six companies pay the loan interest, the court said.

Fake documents submitted to the bank branch claimed that one of the six companies – A Chau Company – had earned profits, but the company had actually incurred losses. Despite knowing the truth, Toan still approved the loan. 

Agribank lost VND21 billion from the loan.

Earlier, in April 2009, the Central Sai Gon branch offered a loan of VND75 billion ($3.3 million) to ADN Company, whose director was Hoang Van Cuong.

Cuong falsified documents that claimed the company needed investment for a rubber-tree plantation project in southern Binh Thuan Province, according to the court.

Former bank branch director Phi Thi Ong signed the papers authorising the loan, although she was aware that Cuong’s company was unqualified to take it out.

ADN Company was not able to pay back the loan.

Hoang Tien Dzung has fled Vietnam, and police have issued a wanted notice for him.

Source: VNS