Black credit busts shake society in Nghe An

(Baonghean.vn) - Recently, a series of black credit busts have shaken many villages. The serious consequences of black credit activities have caused many families to be broken up, brothers and sisters to be separated, and people's lives to be disrupted.

1. Vice Chairman of Nghia Thuan Commune (Thai Hoa) is bankrupt of more than 8 billion VND

In August 2014, many traders in the Nghia Thuan market area (Thai Hoa town) were in a dead end when Mr. Nguyen Thanh Phuong - Vice Chairman of the People's Committee of Nghia Thuan commune (Thai Hoa town) and his wife, Mrs. Tran Thi Xuan (born in 1962) declared bankruptcy of more than 8 billion VND.

Small traders are worried and confused when Mr. Phuong declared bankruptcy.

According to the report Mr. Phuong sent to the Party Committee and People's Committee of Nghia Thuan commune, from March to August 2014, he and his wife borrowed money from people to do business with the promise of paying high interest rates... The couple invested the borrowed money in food business and selling household electrical appliances, but lost money. Mr. Phuong's son also established a separate company to invest in construction, but could not recover the capital, leading to bankruptcy.

Before his youngest daughter’s wedding, seeing that his relatives were coming to collect the debt “too fiercely”, Mr. Phuong wrote a letter asking for a delay, promising that after his daughter’s wedding, he would sell the house he was living in to pay off the debt. However, the Vice Chairman and his wife later quietly transferred their house to another person for 3.5 billion VND, without paying the relatives.

2. 8.3 billion VND savings and credit association collapsed in Giang Son Dong (Do Luong)

In January 2015, a hui collapse occurred in Giang Son Dong commune (Do Luong). Many people in the commune filed a complaint with the police accusing Ngo Thi Trang, resident of Giang Son Dong commune, of borrowing money with the promise of paying high interest rates. But when Trang declared bankruptcy, everyone panicked and worried.

Many families borrowed money under the poverty program to lend to Ms. Trang (Photo courtesy).

According to the investigation, from 2013 to October 2014, under the pretext of expanding livestock farming and trading business, and exchanging bank deed, Ngo Thi Trang borrowed from 68 households in 3 communes of Giang Son Dong, Giang Son Tay, Hong Son (Do Luong) with an amount of over 8.3 billion VND.

With an attractive interest rate of 1,000-1,500 VND/million/day, the victims of Trang's trap are not only families with plenty of money, but also many people who borrow money from relatives, friends, even borrow capital under the poverty program and then lend it to Trang at a higher interest rate, and now are confused and worried.

In July 2015, Do Luong district police issued a decision to prosecute the case, prosecute the accused and execute an order to temporarily detain Ngo Thi Trang, residing in Giang Son Dong commune (Do Luong) for fraud and property appropriation.

3. Fraud and appropriation of nearly 24 billion VND in Tan Son (Do Luong)

In early February 2015, in Tan Son commune, Do Luong district, a major "hui" collapse occurred, causing a stir in public opinion. Accordingly, dozens of households lent "hui owner" Nguyen Thi Loan tens of billions of dong, but Loan still did not pay back many months after the due date.

People of Tan Son commune are worried when Ms. Loan declared bankruptcy.

Initial investigation shows that from the end of 2013 to around October 2014, Loan borrowed money from 31 households with a total amount of up to 23 billion 991 million VND. In which, the least amount was 5 million VND and the most was nearly 7 billion VND.

What is special is that, although they lent all their assets to Loan, many people only received a confirmation paper typed by her. Many people even "mortgaged" their land use right certificates, then borrowed money at high interest rates to lend to her. When they heard that Loan was bankrupt, many families fell into misery, even broken up.

On April 7, 2016, the Investigation Police Department of Do Luong District initiated a criminal case, prosecuted the accused and issued a 4-month detention order for Nguyen Thi Loan to investigate the act of "Abuse of trust, appropriation of property". Currently, the unit has handed over the case and the subject to the Investigation Police Department of the Provincial Police to investigate and clarify the case.

4. 50 households are dead because of debt in Quynh Thach (Quynh Luu)

In August 2015, many people in Quynh Thach commune (Quynh Luu, Nghe An) were confused when Ms. Ho Thi Hoa (born in 1966, residing in hamlet 12, Quynh Thach commune) took advantage of their trust to borrow money from dozens of households in the commune for more than 2 billion VND but deliberately did not pay it back. Many times after that, Ms. Hoa avoided and fled the locality.

Many people who lent money to Ms. Hoa were relatives and friends.

Specifically, according to the people in Quynh Thach commune, in 2013, Ms. Hoa used the excuse of needing money to invest in a big business so she asked to borrow from many people, mainly close relatives. From those with a small amount, Ms. Hoa borrowed 3-5 million VND. From those with a large amount, Ms. Hoa borrowed hundreds of millions of VND.

Only when they heard that Ms. Hoa "broke the debt" and ran away, many people filed a complaint with the police.

5. Black credit collapse of more than 3 billion VND in Tru Son (Do Luong)

At the end of March 2016, many households in Tru Son commune (Do Luong) sent a petition to the authorities accusing Ms. Tran Thi Ha (Hamlet 10, Tru Son commune, Do Luong district) of borrowing money with interest but has not yet paid it back. The total amount that these 14 households lent Ms. Ha was more than 2 billion VND.

14 people accused Ms. Tran Thi Ha of borrowing more than 2 billion VND but not paying it back.

These people lent Ms. Ha money at a rate of 2%/month. However, when the time came to pay, they came to ask for the money but she kept delaying them again and again. Of the 14 people who wrote the complaint, the person who lent Ms. Ha the most money was more than 474 million VND, the person who lent the least was 20 million VND.

These people also said that the time Ms. Ha started borrowing was in 2014 and the most recent was about 1-2 months ago. It is worth mentioning that the borrowing and lending procedures were very simple, with only a few handwritten lines.

Ms. Tran Thi Ha said that she borrowed money from people and then lent it to 14 people in Dai Son and Hien Son communes to profit from the interest rate difference. The total amount of money that Ms. Ha lent was more than 3 billion VND. Currently, the police of Do Luong district are investigating to clarify the case.

Pham Bang(synthetic)