Rédaction Africa Links 24 with Uganda Monitor
Published on 2024-04-11 18:04:42
A court in Vietnam has issued the death sentence to real estate tycoon Truong My Lan for her involvement in a $12.5 billion financial fraud scheme, which is considered the country’s largest on record. The trial, which began on March 5, concluded earlier than expected and marked a significant victory in the government’s ongoing campaign against corruption led by Communist Party leader Nguyen Phu Trong.
Truong My Lan, the chairwoman of Van Thinh Phat Holdings Group, was found guilty of embezzlement, bribery, and violations of banking regulations in a trial held in Ho Chi Minh City. Despite pleading not guilty to the charges, Lan was sentenced to death for embezzlement, along with 20 years for bribery and violations of banking rules. Her family has expressed their intention to appeal the verdict, with a family member stating that they will continue to fight for justice.
In addition to Lan, 84 other defendants involved in the case received various sentences, ranging from probation to life imprisonment. Lan’s husband, Eric Chu, received a nine-year jail sentence, while her niece was sentenced to 17 years in prison. This case highlights the severity of economic crimes in Vietnam, as the death penalty is often imposed for such offenses, in addition to violent crimes.
Truong My Lan’s rise from a cosmetics trader to a prominent figure in the real estate industry was marked by her founding of Van Thinh Phat in 1992. However, she and her accomplices were found guilty of siphoning off billions from Saigon Joint Stock Commercial Bank (SCB) through unlawful loans and mismanagement. This led to a bailout of SCB by the state after Lan’s arrest and a subsequent run on its deposits.
The jury emphasized the detrimental impact of Lan’s actions on SCB and the public trust in the Party and State’s leadership. The ongoing restructuring of the bank involves the legal assessment of assets used as collateral for loans and bonds issued by VTP, amounting to $1.2 billion. While some assets are high-end properties, many remain unfinished projects, complicating the recovery process.
Truong My Lan’s downfall also exposed her involvement in bribing officials, including a senior central bank inspector who received $5.2 million and was sentenced to life in prison. Vietnam’s anti-corruption efforts, known as “Blazing Furnace,” have targeted numerous high-ranking officials and business executives, signaling a commitment to rooting out systemic corruption.
The pervasiveness of corruption in Vietnam extends to public services like healthcare, where bribes are reportedly common for accessing medical treatment in public hospitals. Efforts to combat corruption are ongoing, with the government and international organizations working to address these challenges and promote transparency and accountability in all sectors of society.
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