The Politburo of the Communist Party of Vietnam has penalized Nguyen Van Binh, chief of the Central Party Committee’s Economic Commission, for his violations when he was governor of the State Bank of Vietnam.

Party General Secretary and State President Nguyen Phu Trong chaired a Politburo meeting in Hanoi on Friday to consider punishment for Binh, a Politburo member himself, according to an announcement the Office of the Central Party Committee issued on Sunday.

Binh was held accoutable for dealing with bad debts and causing state revenue losses when he was governor of the State Bank of Vietnam, according to what was concluded at the meeting.

He was at fault for issuing a resolution allowing Vietnam Construction Bank to take out an unsecured loan with zero percent interest.

Binh was found being responsible as the head of the State Bank of Vietnam for approving a group’s buying a stake in the now-defunct TrustBank, the predecessor of the Vietnam Construction Bank.

The former state bank governor wrongly implemented the prime minister’s directions in purchasing three banks at zero Vietnamese dong.

In office, Binh let wrongdoings happen at the State Bank of Vietnam and credit institutions, leading to the prosecution of many individuals.

Given such violations, the Politburo decided to give Binh a warning, the second of a four-level penal system of the Party.

Binh was governor of the State Bank of Vietnam from 2011 to 2016 before he was named chief of the Central Party Committee’s Economic Commission in April 2016.

He was replaced by Le Minh Hung, who assumed his new duty as chief of the Office of the Central Party Committee in October this year.   

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