18-12-2023 (HANOI) Truong My Lan, the chairwoman of the prominent property developer Van Thinh Phat, is set to stand trial in Vietnam on charges of embezzling a staggering $12.5 billion from a bank for personal gain. The official government website confirmed this development, stating that Lan, along with her accomplices, will face trial at the Ho Chi Minh City People’s Court. The exact commencement date of the trial has not yet been specified.
The charges against Truong My Lan include embezzlement, bribery, and violation of banking regulations. According to the government website, Lan is accused of orchestrating fraudulent loan applications to siphon funds from Saigon Commercial Bank, where she held a controlling stake of over 90% of the bank’s shares. The accusations detail that between February 9, 2018, and October 7, 2022, Lan allegedly ordered the creation of 916 fictitious loan applications, resulting in the misappropriation of more than 304 trillion dong (equivalent to $12.5 billion) from SCB.
In addition to Truong My Lan, 85 other individuals will also face trial at the Ho Chi Minh City court, including a former official from the State Bank of Vietnam who stands accused of accepting bribes totaling $5.2 million.
Established in 1992, Van Thinh Phat is a renowned property developer with a portfolio encompassing upscale hotels, restaurants, luxury apartments, and investments in financial services.
The alleged amount misappropriated by Lan corresponds to approximately 3% of Vietnam’s total GDP for the year 2022, highlighting the magnitude of the case.
Vietnam has been witnessing a sweeping crackdown on corruption within its government ranks and business circles in recent years. This intensified campaign has been driven by the determined Communist Party Secretary General, Nguyen Phu Trong, who has called for a faster and more efficient purge of corruption. Since 2021, over 3,500 individuals have been indicted in more than 1,300 corruption cases.
In November, Truong Quy Thanh, the CEO of Tan Hiep Phat Group, renowned for producing some of Vietnam’s most popular soft drinks, faced charges for embezzling $31.5 million, along with his two daughters.
Furthermore, property developer Tan Hoang Minh Group Chairman, Do Anh Dung, is also set to be prosecuted for illegally acquiring $355 million through a bond sale involving over 6,500 investors.
