A property tycoon has been sentenced to death in one of the biggest corruption cases in Vietnam’s history, with an estimated $27bn (£21.5bn) in damages.
A panel of three hand-picked jurors and two judges rejected all defence arguments by Truong My Lan, the chair of the major developer Van Thinh Phat, who was found guilty of swindling cash from Saigon Commercial Bank (SCB) over a decade.
“The defendant’s actions … eroded people’s trust in the leadership of the [Communist] party and state,” read the verdict at the five-week trial in Ho Chi Minh City.
Lan denied the charges and blamed her subordinates.
Eighty-five other people face verdicts and sentencing on charges ranging from bribery and abuse of power to appropriation and violations of banking law.
Lan embezzled $12.5bn, but prosecutors said on Thursday the total damages now amounted to $27bn, a figure equivalent to 6% of the country’s GDP in 2023. Police identified around 42,000 victims of the scandal.
The death sentence is an unusually severe punishment in such a case.
Lan and the others were arrested as part of a national corruption crackdown that has swept up numerous officials and members of Vietnam’s business elite in recent years.
Lan appeared to say in final remarks to the court last week that she had thoughts of suicide.
“In my desperation, I thought of death,” she said, according to state media.
“I am so angry that I was stupid enough to get involved in this very fierce business environment – the banking sector – which I have little knowledge of.”
Hundreds of people staged protests in the capital, Hanoi, and Ho Chi Minh City, a relatively rare occurrence in the one-party communist state, after Lan’s arrest in October 2022.
Lan, who is married to a wealthy Hong Kong businessman also on trial, was accused of setting up fake loan applications to withdraw money from SCB, in which she owned a 90% stake.
Police said the scam’s victims were all SCB bondholders who could not withdraw their money and had not received interest or principal payments since Lan’s arrest.
Prosecutors said during the trial they had seized more than 1,000 properties belonging to Lan.
Authorities have said $5.2m allegedly given by Lan and some SCB bankers to state officials to conceal the bank’s violations and poor financial situation was the largest-ever bribe recorded in Vietnam.
The woman who was offered the bribe – Do Thi Nhan, the former head of the State Bank of Vietnam’s inspection team – said during the trial the cash was handed to her in Styrofoam boxes by the former chief executive of SCB, Vo Tan Van.
After realising they contained money, Nhan refused the boxes but Van declined to take them back, state media reported.
More than 4,400 people have been indicted during Vietnam’s corruption crackdown, across more than 1,700 cases, since 2021.
A Vietnamese luxury property tycoon – Do Anh Dung, head of the Tan Hoang Minh group – was sentenced to eight years in prison last month after he was found guilty of cheating thousands of investors in a $355m bond scam.
