Consequences of lax management in banks

(Baonghean) -The fraud of the former Head of Administration Department of Saigon Commercial Joint Stock Bank along with the recent arrest of Dang Nam Hai - former Head of Personal Customer and Appraisal Department of Nghe An Import-Export Bank in the past few months has really made many customers of banks in Vinh City extremely confused. This also shows that the management of human resources and credit management, lending in banks, especially joint stock commercial banks, is currently still loose...

"Raising bees in your sleeve"

Up to this point, after Dang Nam Hai - former Head of the Personal Customer and Appraisal Department of Eximbank - has been "settled" in detention, his colleagues are still in shock. No one thought that the young and dynamic head of the department would one day become a "fraudulent debtor". According to the records of the police investigation agency, from the beginning of 2011 until now, taking advantage of his authority as a head of department, Hai has falsified 5 sets of bank loan applications and mortgaged assets of 4 borrowers. Accordingly, through the information of customers who deposited savings at the bank, Hai took the account number and the number on the savings book to make a loan contract and forged the loan application. By that method, Hai withdrew 3 billion 970 million VND from customers. In addition, Hai also owed outside parties nearly 17 billion VND with extremely high interest rates. After learning that Hai was unable to pay his debts, a series of creditors came to Hai to demand “handling”. To save his life, on October 22, Hai went to the investigation agency to confess and admit his fraudulent behavior.

According to Colonel Dao Hong Lap, Head of the Department of Investigation of Crimes on Economic Management Order and Positions - Nghe An Provincial Police: It was not when Hai surrendered that the authorities learned of Hai's criminal behavior, but before that, through the investigation of Nguyen Chu Ngoc - Owner of Dai Duong Restaurant, the clues related to Hai had been verified.

A fake set of documents used by Nguyen Chu Ngoc to borrow money from the bank.

Nguyen Chu Ngoc and Dang Nam Hai were originally "business partners" and pooled capital to establish Thai Binh Duong Joint Stock Company at No. 2 - Ho Tung Mau Street (Vinh City). In addition, Ngoc also established 2 other companies, including Dai Duong restaurant located in the premises of the Labor Culture House. It is not known whether this is due to this close relationship or not, but when Nguyen Chu Ngoc applied for a loan at Eximbank, it was very easy. Up to this point, Ngoc's total outstanding debt at Eximbank is 20.7 billion VND, notably, Ngoc's mortgaged assets at the bank include 7 fake land use right certificates. The estimated loan value of these 7 sets of documents is up to more than ten billion VND. Ngoc's trick is to take information from a real set of documents and then use sophisticated measures to copy them "exactly" to mortgage. Or Ngoc took a set of documents with “real name, real land” and then changed the name to “deceive” the bank…

Alarming situation

Commenting on the "bankruptcy" situation that has emerged in many big cities recently, including Vinh City, Colonel Dao Hong Lap said: It could be the stock market fever a few years ago, the gold fever of the past 3 months and the "freezing" of the real estate market for a year now are the main causes. Through a number of cases that the police are investigating recently, the debtors are mostly famous stock players or real estate traders. In the past, because the gold price fluctuated a lot and the real estate price went up, some people accepted bank loans and "hot" loans to invest. Now the market has stagnated, stock prices often hit rock bottom, gold prices "go up and down" erratically, making investors unable to react, heavy debts are calculated by the day, causing many of them to quickly become debtors...

In addition to the above objective reasons, the subjectivity and laxity of some banks are also "loopholes" for scammers to exploit. In fact, to prepare a loan application, the individual or company borrowing must prove the investment project, and must have a local appraisal and verification process, but currently all the fake applications that "succeed" at Eximbank cannot prove these conditions.

In response to the above incidents, recently, the Nghe An Provincial Police Investigation Agency issued Document No. 763/PC46 (D6) to the Director of the State Bank of Vietnam - Nghe An Branch regarding "rectifying lending activities", stating: "In the past, the Nghe An Provincial Police Investigation Agency has prosecuted 2 cases of fraud, abuse of trust, appropriating tens of billions of VND from commercial banks, and is verifying dozens of complaints from citizens about being swindled by some subjects into lending them land use right certificates and assets attached to land so that they can mortgage them to borrow capital from banks.

Their tricks are to use the guise of establishing joint stock companies, building fake projects and business plans, expanding their reputation by advertising on mass media, borrowing money to buy luxury cars, etc. In particular, they also use the trick of forging land use right certificates to defraud banks.

Through the investigation, it was found that banks had loopholes such as: When receiving loan applications from banks, credit officers and business officers of banks did not properly perform their functions and duties; did not properly implement inspection processes and procedures; bank officers did not directly work with the one-stop center of land use right registration offices; did not monitor the effectiveness of loan use. In order to promptly prevent the activities of criminals, the Investigation Police Department requested that "the State Bank of Vietnam, Nghe An branch, have a plan to inspect credit activities, detect and strictly handle violations, and direct commercial banks to strictly implement the regulations of the state and the banking industry on credit..."

Dam Phuong - My Ha