A top banker in Vietnam was arrested in connection with the same case that led to the detention of another tycoon this week, dpa quoted news reports on Friday. Ly Xuan Hai, former chief executive of the Asia Commercial Bank, Vietnam's fourth-biggest lender by market value, was arrested late Thursday for "intentionally violating state regulations on economic management, causing serious consequences," the Tuoi Tre newspaper said, quoting police. Hai's arrest came hours after he resigned from his post, which he had held since 2005. Observers said charges could include helping another banking tycoon secure illegal loans from local banks. Under Vietnam's laws, Hai could face up to 20 years in prison if convicted. Banking tycoon Nguyen Duc Kien, co-founder of the Asia Commercial Bank, was arrested Monday and charged with "illegal business activities," police said, meaning he was accused of doing business in fields in which he was not registered with authorities. The charges involve three companies owned by Kien that are not allowed to participate in investments, but they allegedly issued corporate bonds and false business plans to secure hundreds of millions of dollars from banks, Tuoi Tre said, quoting police. Kien then allegedly used that money to buy shares of many banks and mortgaged the shares at those banks for cash to use for debt repayments and personal expenditures, the newspaper said. The arrests of Kien and Hai prompted depositors in the Asia Commercial Bank to withdraw money. A total of 650 million dollars was withdrawn over the past three day, Nguyen Thanh Toai, deputy chief executive of the bank, said Friday. The central bank has pumped in at least 240 million dollars to help the bank improve liquidity while other local banks are also assisting it. "The situation is under control," Toai said. Kien, a multimillionaire, is one of Vietnam's 20 richest people, according to stock reports, and is a major shareholder in several commercial banks. He is also deputy chairman of the Vietnam Professional Football Joint Stock Co, which runs the V-League, and is chairman of the Hanoi Football Club. Kien has also invested in many other areas, such as tourism and the garment industry. -- SPA
