A police officer reads the arrest warrant to Ức Kim Khoan. — VNA/VNS Photo

LÂM ĐỒNG — A commune-level official in the southern province of Lâm Đồng has been arrested for allegedly siphoning off disaster relief funds meant for flood-hit families, police said on Saturday.

Police detained Ức Kim Khoan, an employee of Phan Sơn Commune's Fatherland Front Committee, on suspicion of appropriating public money.

Investigators said the alleged embezzlement occurred after the provincial Fatherland Front transferred VNĐ550 million (about US$21,000) to the commune’s Relief Fund on November 6.

The money was earmarked for residents recovering from storm and flood damage and for teams clearing a landslide on the Đại Ninh Pass.

Khoan had been assigned to work with the commune accountant to withdraw the funds and oversee payments to affected families. Instead, he allegedly diverted VNĐ500 million ($19,000) for himself.

The misappropriation came to light only when local agencies prepared to distribute support to residents and found most of the funds missing.

Khoan confessed that within two days of withdrawing the money, he had spent it all, using the funds to repay debts, invest in cryptocurrency and cover personal expenses. — VNS