One of Vietnam’s prominent property moguls faced the harshest penalty on Thursday in a colossal corruption saga, causing a ripple effect with an estimated $27 billion in losses.
Truong My Lan, chair of major developer Van Thinh Phat, received a death sentence following a lengthy trial in Ho Chi Minh City. Accused of orchestrating a decade-long scheme to siphon funds from Saigon Commercial Bank (SCB), Lan’s conviction shook the nation’s trust in leadership.
Joined by 85 others implicated in various crimes such as bribery and abuse of power, Lan’s husband, Hong Kong billionaire Eric Chu Nap Kee, received a nine-year prison term. The scale of Lan’s embezzlement, totaling $12.5 billion, ballooned to staggering proportions, now pegged at $27 billion, equivalent to six percent of Vietnam’s 2023 GDP.
The court mandated Lan, 67, to compensate nearly the entire sum of damages. Such a severe sentence is uncommon in such cases, yet Vietnam maintains a firm stance on criminal justice.
The corruption scandal, part of a broader crackdown on corruption, has prompted public outcry and protests. With over 42,000 victims identified, including individuals like Nga, who invested with SCB, the repercussions of Lan’s actions reverberate across society.
Lan’s elaborate scheme involved fabricated loan applications, trapping SCB bondholders in financial limbo. Prosecutors revealed the seizure of over 1,000 properties linked to her, underscoring the scale of her illicit gains.
Notably, Do Thi Nhan, former head of the State Bank of Vietnam’s inspection team, received a life sentence for her role in the scandal. She admitted to receiving bribes, shedding light on the depths of corruption within the banking sector.
Vietnam’s relentless pursuit of justice against corruption extends beyond this case, with thousands indicted in recent years. The conviction of top figures like Lan and Do Anh Dung underscores the nation’s commitment to combating corruption and upholding integrity.
