Vietnam jails former central bank deputy governor for 3yrs

A former deputy governor of Vietnam's central bank was jailed for three years Monday for negligence after he oversaw a dodgy restructuring scheme that lost the state $600 million.

Dang Thanh Binh is the most senior State Bank of Vietnam official ever jailed and joins scores of bankers already behind bars for the multi-million dollar scam. Vietnam's conservative leadership has targeted the corruption-plagued banking sector with impunity as its sweeping anti-graft campaign picks up steam.

Both state-run and private banks have found themselves in the crosshairs of the campaign but Binh is the first and most senior state bank official to be convicted.

The court said Binh oversaw the restructuring of private Vietnam Construction Bank (VNCB) in a dodgy deal that caused losses of more than $600 million.

He was sentenced to three years in jail Monday for "negligence causing serious consequences" over the huge scheme, a court clerk confirmed to AFP.

Binh colluded with VNCB boss Pham Cong Danh, who has already been jailed for 30 years for his role.

State media said Binh knew the restructuring was causing major losses but failed to report it -- or stop it.

"Dang Thanh Binh knew of the report on mistakes at VNBC but did not provide measures to fix the problem," state-run VNExpress said.

"Binh's actions aided bank chairman Pham Cong Danh... to cause losses of $635 million," it continued. The State Bank of Vietnam later acquired VNCB for $0 to save it from folding.