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Bank official arrested for loan scam in southern Vietnam

Police in the Mekong Delta city of Can Tho arrested a former VietABank official on Friday for alleged credit regulation violations that caused losses of over VND15 billion (US$712,500) to the bank, Tuoi Tre reported.

Nguyen Phuong Giang, 36, former chief of VietABank's Can Tho branch, was accused of procedural violations in the granting of a nearly VND83 billion ($3.94 million) loan to Tran Thi Bach Hue.

Her violations included failing to properly assess Hue's assets before granting the loan, the news report said.

After receiving the money, Hue was able to take back several of the assets she had claimed as collateral for the loan and mortgaged them for loans elsewhere. She is also accused of selling at least one of those assets.

How she got those assets back without paying the loan remains a mystery.

The newspaper report said Hue's younger sister, Tran Thi Kim Luyen, sold one of the assets to two different people, helping Hue earn nearly VND3 billion ($142,500), according to the newspaper.

It said Luyen was also arrested Friday on suspicion of fraud.

In January this year, police arrested Hue and two former branch officials.

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