The State Bank o f Viet Nam (SBV) concluded that the Agribank Service Company violated the Land Law in performing the land use right and implementing property investments in Ha Noi's Dong Da, Tay Ho and Me Linh districts, as well as in the central city of Nha Trang.— Photo vinacorp

HA NOI (Biz Hub) — Do Tat Ngoc, former chairman of the Viet Nam Bank for Agriculture and Rural Development (Agribank), has been arrested for alleged intentional violations of State regulations on economic management.

The Tuoi tre (Youth) online newspaper reported yesterday that Ngoc's violations were allegedly discovered at two Agribank subsidiaries of Agribank Service Company Ltd (formerly Agribank Printing, Trade and Service Company) and Agribank Leasing Company No 2 (ALC2).

His alleged faults were also found at the Ha Noi-based International Education and Training Investment and Development Joint Stock Company (INED).

Police investigators arrested Ngoc after successfully getting approval from the Supreme People's Procuracy.

Earlier , the State Bank o f Viet Nam (SBV) concluded that the Agribank Service Company violated the Land Law in performing the land use right and implementing property investments in Ha Noi's Dong Da, Tay Ho and Me Linh districts, as well as in the central city of Nha Trang.

In 2008, SBV asked Agribank to transfer a printing factory to the outskirts of Ha Noi. Ngoc ordered the transfer to a 20,400-square metre site at Quang Minh Industrial Zone in Me Linh.

INED was leasing the site, which was non-transferable by law, but Agribank officials still signed a contract to buy it for more than VND90 billion (US$4.28 million) and approved plans to build a new printing facility on it for more than VND158 billion ($7.52 million).

The Agribank Service Company has yet to acquire a land use right certificate for the site, and the factory has yet to be moved while the VND90 billion paid for it couldn't be recovered from INED.

Investigators also charged Ngoc of irresponsible supervision of ALC2 operations from 2007 to 2009, sparking losses of more than VND500 billion ($23.81 million) in State assets.

In 2007, Ngoc also approved a plan for Agribank to lend ALC2 more than VND3.7 trillion ($176.19 million), although State regulations didn't allow this transaction at the time.

The SBV has ordered credit institutions to refrain from lending an amount exceeding 10 per cent of their equity to a business that it controlled. ALC2 owed Agribank about VND2.6 trillion ($123.81 million) and was barred from borrowing more from the bank.

Some Agribank officials have been arrested for similar charges since 2013, including former general director Pham Thanh Tan, former deputy general director Kieu Trong Tuyen and former management board member Pham Ngoc Ngoan. — VNS