Logo of Phnom Penh Post newspaper Phnom Penh Post - MFI deputy arrested for alleged loan scam



MFI deputy arrested for alleged loan scam

MFI deputy arrested for alleged loan scam

The deputy chief of a microfinance NGO was arrested on Tuesday evening following allegations that he and his brother, the NGO’s director, had scammed Svay Rieng province villagers out of nearly $40,000, police said yesterday.

According to the victims’ complaint, suspects Chet Sarin, 32, and his brother Chet Ven, 26 – the deputy director and director of NGO the Cambodian Village Development Agency, respectively – tricked 13 families in Svay Rieng’s Pong Teuk commune into borrowing a total of $40,000 from Acleda Bank then turning it over to their organisation, said deputy provincial police chief Kuy Sopheap.

In return, the two men promised to make the bank payments and pay participants 40 per cent in interest after two years, but instead disappeared after a few months, he added. Police managed to arrest Sarin, who reportedly confessed, but Ven is still at large.

“He made payments to the bank for only three to four months, and then he escaped payment. That’s why the bank demanded the villagers pay,” Sopheap said. “Now the village has no money to pay to the bank.”

So Sorn, Pong Teuk’s commune chief, said that the villagers had been lured into agreeing to the scam thanks to the high interest rates promised. In February, the Finance Ministry warned Cambodians not to trust microfinance institutions offering extremely high interest rates.

MOST VIEWED

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a