An unprecedented case of embezzlement is currently keeping Vietnam’s judiciary in suspense. The head of a real estate company is accused of robbing tens of thousands of people of their life savings. It is the equivalent of 11.4 billion euros, equivalent to three percent of Vietnam’s gross domestic product. In the biggest financial scandal in the state’s history, the death penalty is being sought against the main defendant.
Truong My Lan was arrested in October 2022 and has been in court since early March. The former real estate magnate is not only alleged to have defrauded approximately 42,000 people, but also literally looted the Saigon Commercial Bank, of which she owns 90 percent. A total of VND 304 trillion was allegedly embezzled.
The main defendant “stubbornly” denies guilt
A total of 85 people are accused of the financial scandal, eight of whom are on the run. Government officials and central bank employees are also said to be involved in the machinations. Many suspects have made confessions. Accordingly, Lan was the head of the gang, but the 67-year-old denies this and claims subordinates were responsible. The defendant was “stubborn” and showed no remorse, state newspaper Tuoi Tre reported.
Lan is said to have undermined the financial system for more than ten years. Numerous subsidiaries and shell companies at home and abroad served this purpose, obtaining loans worth tens of billions of dollars. She is said to have siphoned off a third of the amount through this corporate structure. Newspapers reported that the suspect’s driver was transporting stacks of cash to her home.
Massive police presence at the trial
The list of charges is long: the suspects are accused of complicity in embezzlement, concealment of machinations, abuse of office, violating banking laws and large-scale bribe payments. The Public Prosecution Service is demanding the death penalty for the main defendant Lan. The trial is expected to last several months and involve 10 prosecutors, 200 lawyers and hundreds of witnesses. The courthouse is protected by a massive police presence.
Vietnam’s banking system could be faltering
Approximately 42,000 people are directly affected by criminal activities as bank customers. Hundreds of people expressed their dismay at the protests in Hanoi and Ho Chi Minh City – a rarity in the communist and authoritarian country. There are fears that the scandal will even rock Vietnam’s banking system.
Measures against corruption also have disadvantages
Vietnam’s ruling Communist Party has been trying to curb corruption for years. But these efforts also have negative consequences. Experts warn this could jeopardize Vietnam’s economic stability. Local governments and officials are currently reluctant to approve infrastructure investments. There is a great fear of becoming the center of investigations.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
