Vietnamese Billionaire Truong My Lan Sentenced to Death in Record Fraud Case

In the biggest fraud trial in Vietnam’s history, 67-year-old real estate mogul Truong My Lan was sentenced to death for systematically looting one of the country’s largest banks for 11 years in a trial that took place in a historic colonial courthouse in Ho Chi Minh City. Lan was found to have improperly borrowed $44 billion from the Saigon Commercial Bank.

Truong My Lan and 85 other defendants were tried as part of a large-scale corruption and money laundering network. The trial called 2,700 witnesses and appointed 10 state prosecutors and nearly 200 lawyers. The evidence weighed six tons and was divided into 104 boxes.

Despite Vietnam’s strict laws, Lan was found to have set up hundreds of shell companies to hold more than 90% of the bank’s shares, through which he manipulated the bank into hundreds of loan transactions.

Systematic Corruption and Punishment

The charges show that Lan transferred 93% of the bank’s loans to his own companies. These transactions led to a massive depletion of the bank’s assets. The vast majority of the defendants received prison sentences of varying lengths, with four receiving life sentences.

For many years, the activities of Truong My Lan and her associates were ignored. This allowed corruption to grow and become more endemic. The SCB, which Lan used as his own piggy bank to finance mass real estate purchases, was used in similar ways by other actors in the market.

Vietnam’s Trial of Corruption

The Communist Party, led by Nguyen Phu Trong, has shown zero tolerance for corruption, dismissing or jailing many high-profile figures as part of an anti-corruption campaign dubbed “Blazing Furnaces”. The campaign exposed the Party’s consolidation of power and authority, as well as the contradictions between economic reforms and anti-corruption.

Economic Reforms and Challenges

Vietnam aims to achieve rich-country status by 2045, but the process brings new challenges, such as increased corruption risks and slowing bureaucracy. As authorities look for ways to fight corruption without slowing down economic activity, they face many paradoxes in the process.

Conclusion: Hope Against Corruption or a New Beginning?

Truong My Lan’s case marks a symbolic turning point in Vietnam’s fight against corruption. It underscores the need for resolve and reform in the fight against corruption. However, time will tell how the Communist Party manages this process and whether the delicate balance between economic growth and corruption can be maintained. Lan’s death sentence has sparked controversy both domestically and internationally as an indication of the harsh methods used to root out corruption.