Banking and football tycoon Nguyen Duc Kien was arrested “after three Hanoi-based companies founded by him were detected to have conducted illegal trading activities”, said Nguyen Van Binh, governor of the State Bank of Vietnam (SBV).

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Binh, who was speaking live on TV, quoted the statement from an official document sent by the Ministry of Public Security to SBV at a meeting session with the law-making National Assembly’s standing committee.

This session in which legislators queried top officials was broadcast live on Tuesday afternoon.

Binh made the statement after National Assembly deputy Do Van Duong from Ho Chi Minh City asked if the SBV governor knew about the arrest and what SBV would do to prevent violations related to the local banking system.

It [the arrest] has nothing to do with Asia Commercial Joint Stock Bank (ACB) or the management at the bank, so ACB depositors should set their mind at ease, governor Binh explained. The arrested Kien is a co-founder of ACB.

SBV has directed relevant state agencies under its umbrella to ensure liquidity support to ACB just in case of massive withdrawals, Binh added.

National Assembly’s vice chairperson, Nguyen Thi Kim Ngan, said the Supreme People's Procuracy of Vietnam will respond to Duong’s question in writing.

Kien’s arrest is based on written complaints against law violations occurred at the three companies, according to the Investigation Police Agency under the Ministry of Public Security.

They are Công ty cổ phần đầu tư thương mại B&B (roughly translated B&B Trade and Investment Joint Stock Co), Công ty cổ phần đầu tư ACB Hà Nội (ACB Hanoi Investment Joint Stock Co), and Công Ty TNHH Đầu Tư Tài Chính Á Châu Hà Nội (Hanoi Asia Financial Investment Co Ltd), said the police agency. 

Kien, who is chairman of the boards of management of all the three firms, may face a criminal trial under Article No.159 of the Penal Code, which refers to illegal trading activities.

The three firms operate in civil engineering - housing construction, real estate and hotel-catering services.