VDB chiefs arrested for lending violations

Police yesterday prosecuted and arrested six cadres and leaders of the Viet Nam Development Bank (VDB)'s at the Minh Hai branch for violation of lending laws, with serious consequences.

The group included three detainees - Trinh Minh Tuan, former director of the branch, Huynh Quang Xuan, Head of Credit Department, and Tran Thi Oanh, cadre of the Credit Department.


Three others were released on bail, including Vu Van Quang, former deputy director of the branch, Phan Thanh Toan and Phan Thanh Hai, both Deputy Heads of Credit Department.

The police also raided the houses of the group, collecting evidence related to the case.

Since 1999, VDB has lent trillions of dong to businesses that process and exporting seafood, with low-interest rates. But the banks have not been able to recover their debts because they were taken out by businesses who gave false reasons for requiring the loans, or that were on the verge of bankruptcy, according to the investigation.

Businesses who have failed to repay debts included Ngoc Sinh Seafood (who owe more than VND290 billion (US$13.76 million)); Nhat Duc Seafood, who owe a total of VND176 billion ($8.35 million); and Viet Nam Fish One, who owe VND118 billion ($5.6 million)