Bank scandal claims Venezuelan politician

CARACAS, Venezuela, Dec. 7 (UPI) -- Venezuelan President Hugo Chavez says his science and technology minister will resign in the wake of a banking scandal involving his brother.

During his weekly televised address, Chavez said Minister Jesse Chacon would resign after his brother Arne Chacon turned himself in to the secret police, The Wall Street Journal reported Sunday.

Arne Chacon is linked to the failure of Banco Real CA, Central Banco CA and Baninvest CA, bringing to seven the number of banks the government has seized in the past week, the Journal reported.

"How is it that Arne Chacon, who was born without anything, is now the president of a bank?" Chavez said. "Our radars are failing."

The failed banks accounted for about 8 percent of deposits in the country's banking structure. Chacon and the bank's owners are accused of using the banks for self-lending, officials say. Three former executives are behind bars, the Journal said.

"I talked with (Ramon) Carrizalez, who is the vice president, and I asked him for his opinion. He spoke with Minister Chacon. Jesse told me that if the best thing for the government was to submit his resignation, he would do it. He is leaving the government ... . I am very sorry, but I think that he has made the best choice. I regret what happened. I am sending all my support. This is painful."