Police probe ex-minister for banking violations

Police probe ex-minister for banking violations

Police are probing Tran Xuan Gia, former minister and ex-chairman of Viet Nam's Asia Commercial Bank (ACB) and three other bankers for alleged violations of economic management.

The four individuals were allegedly involved in authorising ACB employees to deposit funds at 29 different banks to enjoy higher deposit rates than the cap imposed by the central bank.

The Ministry of Public Security said Gia and two deputies approved a deposit of 718 billion dong (US$34 million) of the company's funds at another bank.

Gia, who was minister for planning and investment from 1996 to 2002 and the ACB's chairman from 2008 until he resigned last Wednesday, is being kept under house arrest.

Gia and the three others have not been taken into custody as they have "good personal records, provided honest confessions and are actively co-operating with investigators," according to the Ministry of Public Security.

Last month, both ACB founder and former director general were arrested for allegedly violating State regulations on economic management leading to serious consequences.

The Government has foreseen the possible outcomes of Tran Xuan Gia's prosecution with a focus on ensuring the national banking system stability and guaranteeing the interests of the depositors, said Minister-Chairman of the Government Office Vu Duc Dam in the press meeting yesterday.

As Gia was dismissed from the position of ACB chairman before being prosecuted, and the bank has also appointed a new chairman, the prosecution does not affect the operation of the ACB, he added.

vietnamnews