Business
SBV issues reassurances after arrest of Vietnam Social Security directors
  • | nguoilaodong, dtinews.vn | November 14, 2018 02:15 PM
 >>  Two former directors of Vietnam Social Security arrested
The State Bank of Vietnam has reassured depositors after former directors of Vietnam Social Security (VSS), including those at Agribank have been detained by police.

   

A file photo of former deputy minister of labour, invalids and social affairs Le Bach Hong



A temporary detention order and search warrant have been issued on former deputy minister of labour, invalids and social affairs Le Bach Hong who is also former VSS general director; former VSS general director Nguyen Huy Ban; and two former head of general planning division under the VSS planning and finance department Tran Tien Vy and Hoang Ha.

They have been detained over allegations of economic mismanagement at VSS, Agribank's Financial Leasing Company 2 (ALC II) and other related units.

The ALC II declared bankruptcy in July and after the arrest, there were rumours that Agribank had also gone bankrupt.

Nguyen Hoang Minh, deputy head of the SBV in HCM City, said on November 12 that the news spread of ALC II's bankruptcy had badly affected Agribank customer confidence. He assured that ALC II was an independent unit so Agribank hadn't been affected.

"The operation at 42 branches of Agribank was still normal and the deposits had increased. Every transaction, including money withdrawals, have been carried out as usual. The SBV also promised to help ensure Agribank's operation," he said.

He asked customers at Agribank to be cautious about rumours to avoid unnecessary losses.

Agribank also announced during the weekend that depositors were not affected and they were running as usual after ALC II went bankrupt. According to the bank, when VSS former director Le Bach Hong was arrested, several newspapers said that Agribank was responsible for paying the over VND1trn (USD43m) debt ALC II owed to VSS.

However, the HCM City People's Court had ruled that Sen Viet Asset Management and Liquidation Company was responsible for managing ALC II’s debts.

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