26-11-2024 (HANOI) Vietnamese property tycoon Truong My Lan, who faces execution for orchestrating a staggering $27 billion fraud scheme, made an emotional appeal for clemency before an appeals court in Ho Chi Minh City.
The 68-year-old founder of Van Thinh Phat Group, convicted in what stands as one of Asia’s most significant financial scandals, expressed deep remorse whilst proposing to liquidate assets to repay her victims. “My sole focus is on settling debts with the State Bank of Vietnam and the affected citizens,” Lan told the court, her voice reportedly wavering with emotion.
The case has sent shockwaves through Vietnam’s business community and sparked unprecedented public demonstrations, with thousands of SCB bank investors seeing their life savings evaporate. Outside the State Bank of Vietnam’s headquarters in Hanoi, protesters gathered again today, demanding justice and compensation.
Prosecutors remained unmoved by Lan’s entreaties, maintaining that her crimes were “unprecedented in scale and severity”. The fraud, estimated at roughly 6% of Vietnam’s annual GDP, primarily involved the systematic pillaging of Saigon Commercial Bank (SCB), which Lan allegedly controlled through intricate networks of influence.
Under Vietnamese law, Lan could potentially escape capital punishment by returning 75% of the misappropriated funds and demonstrating substantial cooperation with authorities. However, prosecutors argued yesterday that she has failed to meet these crucial conditions.
The scandal has broader implications for Vietnam’s financial sector, with the State Bank implementing emergency measures to stabilise SCB, though the extent of this intervention remains undisclosed. The case forms part of Vietnam’s intensified anti-corruption campaign, which has seen several high-profile prosecutions in recent years.
Lan, who received a separate life sentence last month for money laundering, awaits the appeals court’s verdict alongside 47 co-defendants who are also seeking reduced sentences. The ruling, expected within days, will mark a defining moment in Vietnam’s legal history and its approach to white-collar crime.
The actual damages from Lan’s schemes reportedly reach $27 billion, though her initial conviction in April addressed $12.5 billion of the total sum. As proceedings continue, debate persists regarding the true extent of her personal wealth and assets available for potential restitution.
“I am deeply ashamed of these charges,” Lan told the court in her closing statement, proposing immediate liquidation of SCB and corporate assets as “the swiftest path to compensation”. Whether this eleventh-hour display of contrition will influence the court’s decision remains to be seen.
