Trial over billion-dollar financial fraud begins
THE trial in the country’s largest financial fraud case on record has begun, with nearly 90 defendants accused of being part of a massive 304 trillion dong (RM58.2bil) scam, for which some of them risk the death penalty.

The trial, expected to last until the end of April at the People’s Court of Ho Chi Minh City, is part of a much wider campaign against corruption in the country which the leader of the ruling Communist Party, Nguyen Phu Trong, has pledged for years to stamp out, with no tangible results yet.

The anti-graft drive has led to multiple high-profile arrests and the resignation of top figures in recent months, including the country’s ex-president last year.

However, the trial for the chairwoman of real estate developer Van Thinh Phat Holdings Group is unprecedented for its scale, with thousands expected to be summoned and about two hundred lawyers participating in the proceedings, according to state media.

Real estate tycoon Truong My Lan and her accomplices are accused of siphoning off the 304 trillion dong from the country’s largest bank by assets, Saigon Joint Stock Commercial Bank (SCB), which Lan effectively controlled through dozens of proxies, according to investigators.

If proven, it could be one of the largest financial frauds in Asia.

Malaysia’s 1MDB corruption scandal involved only about US$4.5bil, for instance.

The start of the trial featured prominently in state media which showed pictures and footage of Lan and other defendants in the courtroom surrounded by dozens of police officers.

From early 2018 through to October 2022, when SCB was bailed out by the state after a run on its deposits, Lan appropriated large sums by arranging unlawful loans to shell companies, according to public investigators.

Another US$1.2bil was lost by holders of bonds issued by Van Thinh Phat, Lan’s real estate firm, according to the investigators.

Lan has been a central figure in Vietnam’s finance for years and orchestrated the merger of SCB with two lenders in 2011 to salvage the troubled banks in a plan coordinated with the central bank.She owns several properties in Ho Chi Minh City’s richest district and has multiple assets abroad, according to investigators and public information.

In addition to charges of embezzlement, Lan is also accused of giving bribes and breaching banking regulations. She risks the death penalty. — Reuters
Vietnam
THE trial in the country’s largest financial fraud case on record has begun, with nearly 90 defendants accused of being part of a massive 304 trillion dong (RM58.2bil) scam, for which some of them risk the death penalty.