A prominent Vietnamese property tycoon, Truong My Lan, has received a death sentence in a monumental corruption case, resulting in an estimated €25 billion in damages.
A specially selected panel consisting of three jurors and two judges dismissed all defence arguments by Lan, who chairs the primary developer, Van Thinh Phat.
The verdict, delivered during the Ho Chi Minh City trial, emphasized how Lan undermined public trust in the Communist Party and the state leadership.
Despite denying the charges and blaming her subordinates, Lan was found guilty of embezzling over €11.5 billion from Saigon Commercial Bank (SCB) over ten years.
Following a five-week trial in Ho Chi Minh City, 85 others involved in various corruption charges, including bribery, abuse of power, and banking law violations, await their verdicts and sentences.
The total damages from Lan’s scam are now estimated at €25 billion, equivalent to 6% of Vietnam’s GDP in 2023, making it one of the most significant corruption cases in history.
The severity of the death sentence in Lan’s case reflects the gravity of the offences committed, highlighting the stringent stance against corruption in Vietnam.
Lan’s arrest was part of a broader anti-corruption campaign that has targeted numerous officials and business figures in Vietnam’s elite circles in recent years.
Lan’s remarks during the trial indicated her desperation and regret, acknowledging her lack of expertise in navigating the competitive and complex banking sector.
The public response to Lan’s arrest was notable, with protests erupting in Hanoi and Ho Chi Minh City, reflecting rare dissent in Vietnam’s single-party communist system.
Law enforcement identified approximately 42,000 victims affected by the scandal, underscoring the widespread impact of Lan’s fraudulent activities.
Lan’s modus operandi involved fabricating loan applications to siphon funds from SCB, where she held a majority stake, causing severe financial losses to bondholders.
Prosecutors highlighted the seizure of over 1,000 properties belonging to Lan as part of the investigation into her illicit activities.
The scandal also involved an alleged record-breaking bribe of nearly €5 million, aimed at concealing SCB’s financial irregularities, implicating high-ranking state officials.
Testimonies during the trial, including from former State Bank of Vietnam official Do Thi Nhan, shed light on the intricate web of corruption involving SCB executives and state actors.
Vietnam’s ongoing anti-corruption efforts have seen thousands indicted across multiple graft cases since 2021, signalling a determined crackdown on corruption at all levels.
Recent convictions, such as Do Anh Dung from the Tan Hoang Minh group, underscore the government’s commitment to holding influential figures accountable for financial misconduct.
