HANOI, Vietnam (AP) — Vietnam's real estate tycoon sentenced to death The biggest financial fraud case in the country's history broke out on Thursday, a shocking development in the Southeast Asian country's growing anti-corruption movement.
Truong My Lan, a prominent businessman who was chairman of a vast company developing luxury apartments, hotels, offices and shopping malls, was arrested in 2022. The 67-year-old was formally charged. Total fraud: $12.5 billion –- Almost 3% of the country's GDP in 2022.
Death sentences are not uncommon in Vietnam, but they are rare in financial crimes cases and for such high-profile figures.
The main details of this incident are as follows:
Who is Truong Mai Lan?
Lan was born in 1956 and started helping sell cosmetics with her mother, a Chinese businesswoman, in Ho Chi Minh City's oldest market, according to state media Tien Huong.
She and her family founded Van Tinh Phat in 1992. At the time, Vietnam had abolished its state-run economy in favor of a market-oriented economy open to foreigners. Over the years, VTP has grown into one of the richest real estate companies in Vietnam.
Today, the company owns some of Ho Chi Minh's most prized properties, including the glittering 39-story Times Square Saigon, the five-star Windsor Plaza Hotel, the 37-story Capital Place office building, and the five-star Sherwood Residence Hotel. It is tied to some real estate. Mr. Lan was alive until his arrest.
Ms Lan met her husband, Hong Kong investor Eric Chu Nap-kee, in 1992. They have her two daughters.
What is she accused of?
Lan was involved in the 2011 merger of the troubled Saigon Cooperative Commercial Bank (SCB) and two other financial institutions under a plan coordinated by Vietnam's central bank.
Government documents say she used the bank as a cash cow, illegally controlling it from 2012 to 2022 and using thousands of “ghost companies” in Vietnam and abroad to lend money to herself and her allies. He is accused of having committed a crime.
State media VN Express reported on Thursday that the loan had caused losses of $27 billion.
She is accused of paying bribes to government officials, including a former central official who was sentenced to life in prison for accepting $5.2 million in bribes, and violating banking regulations, according to government documents.
The court sentenced her to death, stating that her actions “not only violate the right of individuals to manage their property, but also put the SCB under special management and undermine the people's confidence in the leadership of the (Communist) Party and the state.” ” he said.
Why is this happening now?
Lan's arrest in October 2022 is one of the most high-profile ongoing cases. Anti-corruption campaign in Vietnam It is increasing from 2022.
weeks after her trial started In early March, Former President Bo Van Thuong resigns This comes after the country's most powerful politician, Communist Party General Secretary Nguyen Phu Trong, was allegedly involved in the so-called “burning furnace” campaign that is characteristic of him.
While Lan's arrest and the scale of the fraud shocked the nation, the case also raised questions about whether other banks and companies had made similar mistakes. worsening Vietnam's economic outlook And it's making foreign investors nervous.
This comes as Vietnam seeks to assert itself as an ideal home for companies looking to exit neighboring China.