VietNamNet Bridge – Two An Binh Bank (ABBank) officials were arrested on Wednesday for lending VND80 billion (US$3.8 million) to the Phuong Nam Foodstuffs Company which accumulated VND1.6 trillion (US$76million) in unsecured loans.

A view of An Binh Bank. — Photo vinacorp

Nguyen Van Son, former director of ABBank's Bac Lieu branch, and Vo Van Truong, the branch's customer relations chief are under investigation along with representatives from four other banks.

According to ABBank's press release, the two officials were arrested for their involvement in credit activities between the bank and Phuong Nam Company.

ABBank said the bank granted the loan to Phuong Nam Company, a successful seafood import-export business, for exporting basa fish in 2011, reported Vneconomy.com.vn

The company, once one the country's top performing businesses, created more than 3,200 jobs and recorded an export turnover of more than $88 million in 2007.

However the company was left to wrangle with VND1.6 trillion ($76million) in debts after former chairman, Lam Ngoc Khuan, failed to return from the US due to medical reasons.

The outstanding debt had accumulated with seven banks and several trading partners.

On the same day, police arrested Vietcombank's Soc Trang branch deputy director, Nguyen Thi Bich Dung and Lam Quoc Tuan, its customer relations chief, along with three credit staff at the branch.

Two officials from the Soc Trang branch of Sacombank, deputy director Luu Quoc Cuong and customer relations chief Le Viet Thang, were arrested for the same investigation into the financial irregularities.

Source: VNS