The chair of a major property company in Vietnam has been sentenced to death in the country's biggest financial fraud case. Trương Mỹ Lan was on trial alongside 85 other co-accused for the embezzlement of 12.5 billion dollars. Prosecutors called for the death sentence, which was seen as an unusually severe punishment. Lan's arrest in October last year was part of an anti-corruption drive that has reached into the upper echelons of Vietnamese politics.
I'm joined now by journalist Michael Tatarsky, talking to us from Ho Chi Minh City, Vietnam's financial hub.
Interviewer: Michael, a little perspective here. Explain the magnitude of this case.
Michael Tatarsky: Sure. So I'll admit right at the start that the numbers have been a little confusing at times. Lan, long before the verdict, had been accused of embezzling 12.5 billion dollars from a bank that she was the controlling owner of.
In today's verdict, they ruled that she needs to reimburse the bank 27.5 billion dollars or 27 billion dollars. It's not entirely clear where the difference in those numbers comes from, but either way, the dollar amounts are massive—by far the largest financial crime in Vietnamese history and indeed among the largest in world history, I believe.
Interviewer: The numbers are massive, and the punishment is huge. You might ask, why the death sentence?
Michael Tatarsky: Yeah, as you noted, this is rare, certainly in financial crimes. I mean, Vietnam does have the death penalty, but it's not widely used—certainly not in, for lack of a better phrase, white-collar crime like this.
Prosecutors recommended it late last month, given the sheer scale of the crime. This morning, the court said that they believed Lan deserved the highest punishment, which kind of made it clear what the verdict would be.
So, it's clear they want to make an example of her, and given the scale of this, they took this kind of unprecedented step with the verdict.
Interviewer: Michael, I'm curious. What in general is known about the other 85 people accused of some involvement in this case?
Michael Tatarsky: Many of them are relatively unknown, but there are a few other high-profile defendants. Trương Mỹ Lan's niece, for example, received 17 years in jail. She was the CEO of another major company within the Vạn Thịnh Phát ecosystem.
Lan's husband, who is actually a Hong Kong national—which will be interesting—got nine years in jail for his involvement. Though, I think he was trying to plead ignorance of the Vietnamese system and laws here and processes.
Perhaps the other most notable one is an official from the State Bank of Vietnam, who was accused of receiving a 5-million-dollar bribe from Lan to overlook her activities. She received life in jail.
The other defendants ranged from probation sentences to a few other life sentences as well.
Interviewer: I'm sure this is one of the few things people in the region are talking about today. What's likely to be the political ramifications of all of this?
Michael Tatarsky: Politically, it remains to be seen. This comes within the broader context of a large campaign. The president resigned last month, related to this campaign—not this trial but this campaign.
However, this is largely in the private sector, and the impact here in Ho Chi Minh City has been profound. Vạn Thịnh Phát and its various subsidiaries control something like 1,000 properties in the city, all of which have been seized by the police for investigation.
It’s not clear what kind of legal process those buildings will go through. This includes unfinished skyscrapers and very high-profile properties.
So, the political fallout at the moment appears to be relatively minimal, but it's early. On the private sector side here in Ho Chi Minh City, this is going to be felt for a very long time.
Interviewer: That's journalist Michael Tatarsky. Michael, many thanks.
Source:
DW News. (2024, April 11). Vietnamese billionaire Truong My Lan sentenced to death in largest-ever fraud case | DW News [Video]. YouTube. https://www.youtube.com/watch?v=HwGMaodU0eY