Vietnamese Property Tycoon Sentenced to Death in $27 Billion Scam: Largest Corruption Case in Vietnam’s History

A Vietnamese property tycoon, Truong My Lan, was sentenced to death on Thursday following a highly publicized corruption case that has shaken the Communist-ruled country.

The Court Verdict

Lan, the chairwoman of major developer Van Thinh Phat, was found guilty of swindling cash from Saigon Commercial Bank (SCB) for over a decade. The panel of five jurors and two judges at a Ho Chi Minh City court rejected all defense arguments in the high-profile trial. Along with Lan, 85 others face verdicts and sentencing for charges ranging from bribery and abuse of power to appropriation and banking law violations.

The Magnitude of the Scam

The scam, estimated to have caused damages worth $27 billion, equivalent to 6% of Vietnam’s 2023 GDP, eclipses the recent $10 billion cryptocurrency scam involving FTX founder Sam Bankman-Fried.

Arrests and Protests

Lan and the others were arrested following a national corruption crackdown that ensnared numerous officials and members of Vietnam’s business elite over the past few years. Hundreds of citizens took to the streets in Hanoi and Ho Chi Minh City to protest against corruption following her October 2022 detainment. Authorities have identified about 42,000 victims of the scandal.

The Scheme

Prosecutors claimed that Lan masterminded a scheme in which she set up fake loan applications to illegally withdraw funds from SCB where she owned a 90% stake. Approximately 1,000 of Lan’s properties have been seized, and authorities found what they claim to be a $5.2 million bribe given to state officials to conceal the bank’s financial woes and illegal activities.

Testimonies and Indictments

Former state bank official Do Thi Nhan testified to receiving the bribe, revealing she had been given Styrofoam boxes containing money by the former SCB CEO Vo Tan Van. Although Nhan initially accepted the bribe, she later declined, and Van refused to take back the boxes.

Vietnam’s Anti-Corruption Campaign

Since 2021, around 4,400 people have been indicted as part of Vietnam’s ongoing anti-corruption campaign, resulting in over 1,700 graft cases. The severity of the punishments reflects the Vietnamese government’s zero-tolerance stance on corruption.

Conclusion

With these latest developments, Lan faces the ultimate price for her actions. The court ruling and arrest have sent a clear message to all concerning the consequences of corruption in the country.