Some bank officials in Soc Trang and Hau Giang Mekong Delta provinces have been arrested and charged with violating regulations of the granting of loans in a $25mln bank scam.

Do Hung So, director of the branch of Post Joint Stock Commercial Bank (LienVietPostBank) in Hau Giang, and two his subordinates Nguyen Thanh Hai and Nguyen Hoai Bao have been arrested for investigation. Four other involved staff of the bank have been charged but are all granted bail.

Meanwhile in Soc Trang, Nguyen The Thang and Nguyen Van Xem, director and vice director of the branch of Vietnam Development Bank (VDB) in Soc Trang, and Lam Minh Man, chief financial officer of Phuong Nam Joint-stock Food Company, have been arrested for the same charge.

Investigators said the arrested bank officials illegally approved a false financial report. Minh Man used this report to borrow up to VND700 billion (US$25 million) while his inventory items given as security for the loan is worth about VND20 billion ($718,000).