Vietnamese Property Tycoon Truong My Lan Receives Death Sentence in Landmark Corruption Case
In a historic development, a prominent businesswoman and chair of the real estate conglomerate Van Thinh Phat, Truong My Lan, was sentenced to death on November 2, 2023 for embezzlement, bribery, and violations of banking rules in Vietnam’s biggest-ever fraud case.
A Stunning Development in Vietnam’s Anti-Corruption Crusade
In Ho Chi Minh City, the court’s verdict stated that Lan’s actions “eroded people’s trust in the leadership of the Communist Party and state,” with damages estimated to exceed $27 billion. That figure is nearly double the initial estimate of $12.5 billion, amounting to around 6% of Vietnam’s Gross Domestic Product.
- Estimated damages: $27 billion
- Approximately 6% of Vietnam’s GDP
The trial, which began on March 27, 2023, brought down 86 other defendants, consisting of former high-ranking government officials, central bankers, and previous Saigon Commercial Bank (SCB) executives. They were accused of conspiring to siphon money from the bank over a decade, marking a significant step in Vietnam’s anti-corruption efforts.
Unprecedented National Crackdown on Corruption
This high-profile case is part of a broader national crackdown on corruption led by the Communist Party of Vietnam’s Secretary-General, Nguyễn Phú Trọng, also known as “Blazing Furnace.”
- Indictment of thousands of people
- Resignation of two presidents and two deputy prime ministers
Previously, Lan had denied the charges and vowed to appeal the decision. Her accomplices – her husband, a Hong Kong businessman, and her niece – also faced trial and potential severe penalties.
Historic Five-Week Trial with Extensive Evidence
The five-week-long trial, one of the most covered in state media, saw more than 1,000 properties seized, along with the summoning of 2,700 individuals, and weighed an impressive 6 tonnes. The authorities even installed security cameras and fire safety equipment to protect the evidence before the hearings.
Significant Milestone in Vietnam’s Anti-Corruption Struggle
Dr. Nguyên Khác Giang, a visiting fellow at the Vietnam Studies Programme at the ISEAS-Yusof Ishak Institute, dubbed the case “unprecedented and a significant milestone in Vietnam’s anti-corruption efforts.”
- Large private business indicted
- Most extensive corruption trial in Vietnamese history
Charges against Truong My Lan
Truong My Lan was accused of using third parties and shell companies to control around 91.5% of SCB’s shares and establishing fake loan applications to withdraw large sums of money.
- 91.5% of SCB’s shares controlled through third parties
- Established fake loan applications to withdraw money
The Bribes: The Largest Recorded in Vietnam’s History
To hide the fraud, Lan and other bankers were accused of offering $5.2 million in bribes, the largest recorded bribe in Vietnamese history. These bribes were delivered in Styrofoam boxes.
- $5.2 million bribes
- Largest bribe in Vietnamese history
An Indirect Signal of the State’s Capabilities
The researcher, Giang, pointed out, “This massive case might indirectly signal that the state hasn’t been doing well in managing the increasingly complex market economy and that the state is incapable of controlling their own public officials.”
In conclusion, Truong My Lan’s death sentence represents a significant milestone in Vietnam’s ongoing anti-corruption battle.