19-3-2024 (HANOI) In a landmark trial unfolding in Ho Chi Minh City, Vietnamese prosecutors have called for the ultimate punishment – the death penalty – for Truong My Lan, the alleged mastermind behind the nation’s biggest financial scam on record. Lan, who serves as the chairwoman of real estate developer Van Thinh Phat Holdings Group, stands accused of orchestrating a fraudulent scheme that inflicted staggering damages amounting to US$20 billion, equivalent to approximately 4.9% of Vietnam’s GDP.
The trial, scheduled to extend until the end of April, marks a significant milestone in Vietnam’s ongoing battle against corruption, a campaign championed by the ruling Communist Party led by Nguyen Phu Trong. However, the efficacy of these efforts remains a subject of scrutiny, with few concrete outcomes achieved thus far.
According to reports from state media, Lan has not admitted guilt nor expressed remorse for her alleged crimes. Prosecutors argue that her actions have had “extremely serious and irreparable” consequences, warranting severe punishment, including removal from society.
As the trial progresses, Lan and her associates are accused of embezzling over 304 trillion dong ($12.46 billion) from Saigon Joint Stock Commercial Bank (SCB), which Lan purportedly controlled through numerous proxies. Additionally, prosecutors assert that the group’s illicit activities led to further damages amounting to 193 trillion dong, with a substantial portion comprising accumulated interest on fraudulent loans.
The total financial toll resulting from the case is estimated at a staggering 498 trillion dong ($20 billion), highlighting the magnitude of the alleged fraud perpetrated over a period spanning from early 2018 to October 2022. During this time, Lan is accused of orchestrating illicit loans to shell companies, effectively siphoning substantial sums from SCB. Moreover, investigators claim Lan bribed officials to turn a blind eye to her activities, including allegedly paying $5.2 million to a senior central bank inspector.
In a related development, lawmaker Pham Van Hoa disclosed that three independent auditing firms had committed violations in the SCB case. While the firms were not explicitly named, Finance Minister Ho Duc Phoc acknowledged shortcomings in recent criminal case audits, suggesting the possibility of collusion and violations by auditors.
Notably, major global auditing firms such as Ernst & Young and KPMG did not raise concerns about SCB in their audits, underscoring the complexity and scale of the alleged financial misconduct.
