Cyber Crime
Death Penalty or Rs. 75000 Crore : Vietnam Tycoon’s Race Against Time in Rs 2.24 Lakh Crore Fraud Scandal
VIETNAM: A Vietnamese court on Tuesday reaffirmed the death penalty for prominent property tycoon Truong My Lan, 68, in a multibillion-dollar fraud case but left the door open for a potential reduction in her sentence if she repays a substantial portion of the stolen funds.
Lan, the founder of the real estate conglomerate Van Thinh Phat, was convicted earlier this year of embezzling $12 billion (INR 99,600 Crores) from the Saigon Commercial Bank (SCB), a financial institution she was found to have effectively controlled through proxies. Prosecutors estimated the total damages caused by her fraudulent activities to be $27 billion (INR 2,24,100 Crores), equating to approximately 6% of Vietnam’s 2023 GDP.
The Ho Chi Minh City court dismissed Lan’s appeal, declaring there was insufficient grounds to alter the original sentence. However, it offered a reprieve: if she repays three-quarters of the embezzled $12 billion—roughly $9 billion—her sentence could be commuted to life imprisonment. Lan’s legal team indicated that this process would require time due to the nature of her assets, many of which are tied up in real estate holdings.
A Chance to Avoid Execution
Lan’s lawyer, Nguyen Huy Thiep, expressed optimism, noting that the value of her assets exceeded the required compensation. Yet liquidating properties such as shopping malls, luxury housing complexes, and a harbor in Ho Chi Minh City poses significant logistical challenges.
During her appeal hearings, Lan displayed contrition, expressing regret for the harm caused to the state and individuals. “I feel deeply ashamed for the waste of national resources,” she stated, adding that her focus remains on restitution. Over 600 family-owned properties have already been surrendered to the court, though their valuation remains uncertain.
Widespread Impact and Fallout
The scandal shocked Vietnam, leading to rare public protests from thousands of SCB depositors who lost their savings. In response, the State Bank of Vietnam intervened to stabilize SCB, though the scale of its financial support remains undisclosed.
Lan’s actions were part of a broader national anti-corruption campaign, known as the “burning furnace,” which has implicated numerous high-ranking officials and business elites. A former chief inspector of the State Bank of Vietnam, who accepted a $5 million bribe to overlook irregularities at SCB, also had his life sentence upheld by the court.
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Broader Implications
Lan’s case has highlighted vulnerabilities in Vietnam’s financial system and cast a spotlight on the close ties between business tycoons and political elites. While her death sentence remains pending, her legal team plans to petition the president for amnesty, a process that could take years. In the meantime, she faces immense pressure to secure funds to avoid execution, which is carried out by lethal injection in Vietnam.
Lan’s husband, Hong Kong billionaire Eric Chu Nap Kee, saw his sentence reduced from nine years to seven during the appeal process. Despite the ongoing legal battles, the repercussions of this scandal continue to reverberate across Vietnam, underscoring the need for transparency and accountability in both public and private sectors.