Ho Chi Minh City police arrested another Agribank official,Monday, for his alleged involvement in a loan scam that has caused the VND40 billion (US$2 million) in losses.

According to police, between April, 2009 and June, 2010, Nguyen Huu Long, vice director of Agribank’s branch in District 3, approved VND79 billion ($4 million) worth of loans to two companies, despite the fact that their financial capacity had yet to be assessed.

This allowed Tran Quoc Dan, who had submitted the loan application, to pocket VND40 billion, police said.

Dan owns Trong Bang Transport Company, and his nephew Xuan Lan Trade and Services Company.

Last month police arrested two Agribank officials, Dao Phuong The, chief of the branch’s planning and sales department, and Huynh Trung Hieu, a branch employee.

Also last month, HCMC’s economic management investigators arrested four other Agribank officials on suspicion of violating loan regulations in different cases.