Major property developer’s chairwoman faces trial for alleged $12.5b embezzlement scandal in Vietnam
Truong My Lan, the chairwoman of prominent property developer Van Thinh Phat, is set to face trial in Vietnam for her alleged involvement in embezzling a staggering $12.5 billion from Saigon Commercial Bank (SCB) for personal gain.
The trial will take place at the Ho Chi Minh City People’s Court, as reported by the official government website.
Lan, who holds over 90 percent of SCB’s shares, is accused of orchestrating a complex scheme involving 916 fake loan applications between February 9, 2018, and October 7, 2022.
This elaborate operation allowed her to misappropriate funds on an unprecedented scale, amounting to more than 304 trillion dong.
The accusations against Lan include embezzlement, bribery, and violation of banking regulations. Furthermore, 85 individuals, including a former official from the State Bank of Vietnam implicated in accepting $5.2 million in bribes, will also face trial alongside her in Ho Chi Minh City.
Van Thinh Phat, established in 1992, is a major player in the property development sector with holdings in high-end hotels, restaurants, luxury apartments, and financial services.
The alleged misappropriation by Lan represents approximately three percent of Vietnam’s total GDP for the year 2022, underscoring the gravity of the scandal.
Vietnam has witnessed an intensified crackdown on corruption, spearheaded by Communist Party Secretary General Nguyen Phu Trong.
With more than 3,500 people indicted in over 1,300 graft cases since 2021, the government is determined to root out corruption within both the political and business spheres.
This development follows recent charges against other business figures, including Truong Quy Thanh, the head of Tan Hiep Phat Group, accused of appropriating $31.5 million, and Do Anh Dung, chairman of Tan Hoang Minh Group, facing prosecution for the alleged illegal acquisition of $355 million in a bond sale to over 6,500 investors.
The government’s commitment to a swift and efficient purge of corruption seems unyielding, marking a significant chapter in Vietnam’s ongoing battle against financial misconduct at the highest levels.
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