Ho Chi Minh City’s police yesterday arrested Le Tan Do, former director of the Binh Chanh District Transaction Office of the Bank for Investment and Development of Vietnam (BIDV), for helping a businessman to obtain a loan illegally.
Do was charged with abuse of position and power, said the city’s Social Crime Investigation Police Department.
Also arrested was Nguyen Van Hong, 54, the owner of Hong Ha Plastics Private Enterprise in Binh Duong Province.
Hong was charged with “abusing trust to appropriate assets.”
According to the case file, Hong’s enterprise mortgaged numerous properties to BIDV to borrow VND38 billion (US$1.85 million) in 2005.
When the loan was due in late 2007, Hong failed to repay it and Do suggested him applying for another loan and then using the new loan to settle the old one.
Hong prepared a contract to sell a lot of land, which had been mortgaged to BIDV, to Hai Hong Ha Trading Services and Tourism Company, which is also owned by Hong.
That company then used the contract as a mortgage to the bank for a loan of VND50 billion, which was approved by Do.
Hong told the police he used VND41 billion from the new loan to repay the old debt to BIDV. He also gave VND7.8 billion to Do.
In 2009, Do and Hong managed to withdraw from BIDV the land use right certificate for the said land and then used the document as a security for a loan of VND100 billion from another bank, which later discovered their scam and reported to the police.