Vietnam arrests former CEO of state oil firm

Do Van Khanh is accused of receiving interest paid out by domestic lender OceanBank that went beyond the regulated rates, from 2012 to 2014.

PetroVietnam Exploration Production Corporation, or PVEP, is a leading exploration and production arm of state oil firm PetroVietnam, formally known as Vietnam Oil and Gas Group.

The arrest is part of an ongoing investigation into a multi-million dollar graft case at OceanBank, with scores of officials having been either arrested or sentenced for their involvement in the case, including OceanBank’s former chairman Ha Van Tham, former deputy general director Le Thi Thu Thuy and former accounting director Vu Thi Thuy Duong.

Between 2010 and 2014, OceanBank paid excessive interest to customers on Tham’s orders, causing losses of over VND1.58 trillion ($67.4 million), authorities said.

Tham was sentenced to life imprisonment, while Thuy and Duong got four and 3.5 years in jail, respectively, for violating accounting laws with serious consequences.

Khanh’s arrest is part of a widening crackdown on corruption in Vietnam, with the government launching investigations into and arresting hundreds of public officials and several executives at state-owned enterprises.