The trial for Vietnam’s largest financial fraud case kicked off today, Tuesday, involving nearly 90 defendants accused of orchestrating a staggering $12 billion scam, with some facing the possibility of the death penalty.
The proceedings, slated to extend until the end of April at the People’s Court of Ho Chi Minh City, are part of a broader crackdown on corruption spearheaded by the ruling Communist Party leader Nguyen Phu Trong, who has long pledged to eradicate corruption in the country.
At the heart of the trial is real estate magnate Truong My Lan and her alleged accomplices, who stand accused of embezzling a whopping 304 trillion dong ($12.46 billion) from Saigon Joint Stock Commercial Bank (SCB), the nation’s largest bank by assets.
Lan purportedly wielded significant control over SCB through numerous proxies, funneling funds through illicit loans to shell companies over a span of nearly five years, until SCB required a state bailout in October 2022 amid a deposit exodus.
The trial’s commencement garnered extensive coverage in state media, showcasing images of Lan and other defendants in the courtroom surrounded by a heavy police presence.
Investigations have revealed that in addition to the massive funds siphoned from SCB, another $1.2 billion vanished from bonds issued by Lan’s real estate firm, Van Thinh Phat, further accentuating the gravity of the alleged fraud.
Despite years of anti-corruption efforts, dubbed the “blazing furnace” locally, corruption remains pervasive in Vietnam, with reports indicating widespread bribery across various sectors.
A recent UNDP report revealed that in some regions, up to 90% of individuals seeking land certificates or medical services in public hospitals resorted to bribery, underscoring the entrenched nature of corruption in Vietnamese society.