19-9-2024 (HANOI) In a startling development that has sent shockwaves through Vietnam’s financial sector, Truong My Lan, the embattled chair of major developer Van Thinh Phat, faced a new trial in Ho Chi Minh City on Thursday. This latest legal proceeding comes on the heels of her April conviction, where she was sentenced to death for orchestrating a staggering US$27 billion fraud scheme.
The trial, expected to last a month, sees Lan and 33 co-defendants grappling with fresh charges of money laundering, illegal cross-border cash trafficking, and fraud. The courtroom drama unfolded amidst tight security, with Lan, masked and flanked by officers, taking her place as proceedings commenced.
Outside the courthouse, a group of defrauded investors gathered, their voices raised in protest as they demanded entry to witness the trial. The case has struck a chord with the Vietnamese public, with approximately 36,000 individuals identified as victims of the Saigon Commercial Bank (SCB) fraud.
One such victim, Hoang Ngoc Diep, shared her harrowing experience with reporters. The 47-year-old lost 1.7 billion Vietnamese dong (US$69,000) after investing in an SCB bond in 2022. “I had a mental breakdown and fell into a depression,” Diep recounted, her voice heavy with emotion. “My family used to depend on the interest to take care of my mentally ill sister and to send my children to school. I can no longer afford to give my children extra classes.”
The scale of the fraud is unprecedented in Vietnam’s history. State media reports allege that Lan and her associates misappropriated around US$18 billion by unlawfully seizing assets from SCB and issuing fraudulent bonds between early 2018 and October 2022.
According to the indictment, Lan reportedly instructed her accomplices to withdraw cash and transfer it out of SCB’s system. The ill-gotten gains were then laundered through a complex web of transactions, including settling debts between companies and transferring money abroad under the guise of fake contracts.
In a bizarre twist, Lan’s driver is said to have transported more than US$4.4 billion in cash from SCB’s headquarters to her nearby residence and Van Thinh Phat’s main office. The indictment further alleges that US$1.5 billion was funnelled to foreign countries, while Lan herself received over US$3 billion from overseas between October 2012 and October 2022.
This trial is part of a wider anti-corruption campaign by Vietnam’s communist leadership, dubbed the “blazing furnace” crackdown. The sweep has ensnared thousands, including high-ranking officials and prominent business leaders, in its bid to root out graft within the party, police, armed forces, and business community.
As the trial unfolds, many like Diep cling to hope for justice and restitution. “I hope that the court will have a favourable outcome so that the victims can get back their hard-earned money … and make life a little less difficult,” she said, echoing the sentiments of thousands affected by this unprecedented financial scandal.
