Bank arm registers $143 mln loss, CEO arrested

The Ministry of Public Security Saturday arrested Vu Quoc Hao, former general director of state-owned Agribank’s Financial Leasing Company II (ALC II) after the State Audit of Vietnam found $143.4 million in loss at the company.
The police also arrested Ton Quang Viet, former deputy head of the Leasing Department at ALC II, and Dang Van Hai, chairman of the Board of Members and general director of Quang Vinh Construction and Trading Co., Ltd.
All were charged with “abusing power while on duty.”
The police also searched the residences and offices of the three men.
Earlier, the Supreme People’s Procuracy of Vietnam had decided to prosecute them for their involvements in the loss of about VND3,000 billion ($143.4 million) at ALC II in 2009.
The state audit also found ALC II was exposed to a potential loss of another VND4,600 billion ($220 million) in their leasing activities.
ALC II, an independent accounting unit under the management of the Bank for Agriculture and Rural Development known as Agribank, provides financial leasing services to businesses that need capital for equipment and technology renovation.
ALC II is headquartered in Ho Chi Minh City and has branches in various southern provinces and cities.
To date, it has provided 1,200 leasing projects worth over VND1,200 billion (US$57.4 million) to 650 domestic and foreign companies.

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