CNA’s Tung Ngo looks at Vietnamese tycoon Truong My Lan’s billion-dollar fraud case and the wider implications of the Communist Party’s “blazing furnace” graft crackdown.
Vietnam ese property tycoon Truong My Lan looks on at a court in Ho Chi Minh City on Apr 11, 2024. HANOI: Vietnam continues to reel from the fallout of its largest financial fraud case ever, which has led to real estate tycoon Truong My Lan beingThe case involves some US$27 billion and 42,000 victims. Its exposé also marks a high point in an anti-corruption campaign dubbed “But Lan is the first businesswoman to face the death penalty - and also the most high-profile case to date.
Lan’s schemes were made possible by corrupted officials: A former inspector at Vietnam's central bank was sentenced to life in prison for taking US$5.2 million in bribes to ignore the wrongdoings at SCB. After Lan’s arrest in October 2022, Vietnam's central bank placed SCB under special supervision to stop a run - that is, customers were withdrawing their money in fear of the commercial lender’s potential failure.as of the beginning of April, in a bid to prevent SCB from collapsing. That’s equivalent to one-fourth of the country's foreign exchange reserves.
"Financial institutions need to put an end to the practice of providing loans to specific companies, projects in its own ecosystem or backyard firms under the same group that would endanger the healthiness and safety of the bank," Vietnamese Prime Minister Pham Minh Chinh said in December.“There is no guarantee that it will be the last case … Violators have bypassed the laws easily,” Dr Nguyen Tri Hieu, a banking insider, told CNA. “I am not surprised at the fraud.
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