A prominent Vietnamese real estate magnate faced the ultimate penalty on Thursday as he was sentenced to death in one of the largest corruption cases in history, involving an estimated $27 billion in damages.
Truong My Lan, chair of the renowned developer Van Thinh Phat, was found guilty of orchestrating a decade-long scheme to siphon funds from Saigon Commercial Bank. Despite her defense’s efforts, a panel of three jurors and two judges dismissed all arguments, highlighting the erosion of trust in the Communist Party and the state caused by her actions.
Following the five-week trial, 85 others were also convicted on various charges including bribery, abuse of power, and banking law violations. While some received lengthy prison terms, others faced life imprisonment. Lan’s husband, Hong Kong billionaire Eric Chu Nap Kee, received a nine-year sentence.
Prosecutors revealed Lan’s embezzlement amounted to $12.5 billion, yet the total damage inflicted by the scam ballooned to $27 billion, equivalent to six percent of Vietnam’s 2023 GDP. The court mandated Lan, aged 67, to pay almost the entire sum in compensation.
The imposition of the death penalty, while rare in such cases, reflects Vietnam’s stringent stance against corruption, despite its position as a leading executioner globally, according to Amnesty International. Lan’s arrest was part of a broader anti-corruption campaign targeting officials and business figures.
In her closing statement, Lan expressed regret and desperation, acknowledging her folly in entering the cutthroat world of banking without adequate knowledge. Her arrest in October 2022 sparked protests in Hanoi and Ho Chi Minh City, underscoring the public outrage over the scandal, which affected approximately 42,000 victims.
Among them is Nga, a Hanoi resident who lamented Lan’s sentencing, wishing for a life term so Lan could witness the suffering she caused ordinary citizens. Many victims, like Nga, have yet to recover their investments, highlighting the devastating impact of Lan’s actions.
Lan’s modus operandi involved falsifying loan applications to access SCB funds, of which she owned a controlling stake. The scam left bondholders unable to access their funds or receive payments.
The trial also unveiled staggering levels of corruption within the banking sector, with revelations of multimillion-dollar bribes paid to state officials to conceal SCB’s financial irregularities.
The crackdown on corruption has led to thousands of indictments since 2021, signaling Vietnam’s commitment to combating graft at all levels of society. In a separate case, another prominent property mogul, Do Anh Dung, was sentenced to eight years for defrauding investors in a $355 million bond scam.
