Former Chairman of the Petrovietnam Nguyen Xuan Son. — Photo petrotimes

HA NOI (Biz Hub) — Former Chairman of the Vietnam Oil and Gas Group (Petrovietnam or PVN) Nguyen Xuan Son was arrested on July 21, for alleged violation of State regulations.

The arrest, approved by the Supreme People's Procuracy, was carried out after the Prime Minister signed a decision dismissing Son as PVN Chairman on July 19. Son was found guilty when he was the Ocean Commercial Joint Stock Bank (OceanBank)'s General Director from December 2008 to November 2010.

His misdeeds were detected when the police expanded investigations into the case of former Chairman of OceanBank Ha Van Tham and his accomplices, who were arrested last year for allegedly violating State regulations on credit institutions' lending operations, leading to serious consequences.

Son was arrested for crimes such as "intentionally violating state regulations on economic management that had severe consequences" and "abusing his position and power that had severe consequences."

Son became OceanBank's General Director in December 2008. In July 2014, he was appointed Chairman of the Petrovietnam.

Earlier in April, the State Bank of Viet Nam (SBV) said it would acquire all equity of OceanBank, which had shown "fragile operations with serious mismanagement". The compulsory acquisition was needed to restructure and restore the payment ability of OceanBank, and prevent its weakness from impacting other credit institutions. This takeover terminated all rights and interests, as well as the status of existing shareholders at the bank.

In the case involving intentional violation of state regulations on economic management at the OceanBank, the police has so far arrested five employees. They are Tham, former Deputy General Director of Ocean Commercial Joint Stock Bank Nguyen Van Hoan, former OceanBank CEO and Chairwoman Nguyen Minh Thu, former deputy director in charge of major clients and strategic partners at the bank Nguyen Xuan Thang and Son.  — VNS