Vietnamese police have initiated legal proceedings against a former deputy governor of the State Bank of Vietnam for his alleged negligence in relation to a massive state budget loss of more than $401 million.

Dang Thanh Binh, 63, is being investigated for on charges of negligence and irresponsibility that cause severe consequences, a top official from the police general department under the Ministry of Public Security confirmed to Tuoi Tre (Youth) newspaper on Friday.

Binh is not taken into custody, but is not allowed to leave his residence, according to the police.

The source said Binh has been placed under investigation for his role in the notorious financial loss at the erstwhile Vietnam Construction Joint Stock Commercial Bank (VNCB), which cost the state budget more than VND9 trillion (US$401.79 million).

The ex-VNCB chairman, Pham Cong Danh, was sentenced to 30 years in jail in September 2016 for his main role in the case.

Binh had 30 years of experience in the banking sector. He was appointed deputy governor of the State Bank of Vietnam, the country’s central bank, in May 2005, when he was head of the institution’s training department.

Binh retired in 2014, with his last official job being chairman of the board of member of the Vietnam Asset Management Company.

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