By AP
Truong My Lan, a prominent figure in Vietnam’s real estate industry, has been sentenced to death for her role in the country’s largest financial fraud case. The decision, which was made on Thursday, underlining Vietnam’s firm stance against corruption and serious white-collar crimes.
The 67-year-old chairwoman of the renowned real estate company Van Thinh Phat was charged in connection with an unbelievable fraud scheme worth $12.5 billion in 2022, which is equivalent to about 3% of Vietnam’s GDP. The seriousness of the charges and the court’s commitment to tackle financial fraud at the highest levels are both shown by this historic decision.
Lan was part of a 2011 scheme coordinated by the central bank of Vietnam to merge the beleaguered Saigon Joint Commercial Bank, or SCB, with two other lenders.
In official records, she is accused of using the bank as her personal piggybank, illegally controlling it from 2012 to 2022, and funding herself and her associates via thousands of “ghost companies” in Vietnam and other nations.
A study published by state media on Thursday says that $27 billion was lost as a result of the loans.
According to allegations, Lan was also involved in bribery; she paid a government official to cover up her illegal actions. The former government officer has been sentenced to life in prison for taking $5.2 million in bribes – and violating banking regulations
The seriousness of Lan’s acts is reflected in the court’s decision to impose death penalty on her. Even though this was her first violation and she had participated in charitable campaigns, the court stressed the serious impact of her fraudulent execution on the banking sector and public trust in governance.
Nguyen Phu Trong, the general secretary of the Communist Party of Vietnam, is leading an increased anti-corruption campaign, which includes this important case. The result of Lan’s charges has affected investor confidence and raised questions about the honesty of banks and other companies in the country’s financial landscape.