Police have arrested two officials of a branch of Dak Lak Province Agriculture and Rural Development Bank (Agribank Dak Lak) in Buon Me Thout Town for colluding with a private lender to illegally obtain bank loans.

Nguyen Van Nhan and Tran Dung were arrested on Friday on charges of violating banking regulations.

According to an investigation conducted by the provincial police in mid 2008, following accusations by 50 local residents, Nguyen Thi Hoa, a loan broker, had colluded with Agribank Dak Lak officials to illegally obtain loans from the bank.

Police said Nhan and Dung increased the actual loans of the residents and leased the surplus amount to Hoa.

After Hoa failed to pay her loans, the bank told the residents to pay instead, prompting them to complain to the police.

A report of the director’s Agribank Dak Lak provided evidence showing the ring managed to borrow up to VND49 billion (US$2.39 million). Dung was also found guilty of forging the signature of debtors.

The provincial police arrested Hoa on November 10 last year on charges of swindling properties. As she was pregnant, the police agreed to release her on bail up until now.