Vietnamese Billionaire on Trial for Huge Bank Fraud
In Vietnam, a major trial is underway for a 67-year-old property developer accused of orchestrating one of the world’s largest bank frauds. Truong My Lan is alleged to have secured $44 billion in loans from Saigon Commercial Bank, with prosecutors suggesting that $27 billion of this may never be recovered.
The case, held in a grand colonial-era courthouse in Ho Chi Minh City, is unprecedented in its scale and visibility. The government has been unusually transparent, involving thousands of witnesses, 10 state prosecutors, and around 200 lawyers. The evidence, comprising 104 boxes weighing six tonnes, highlights the magnitude of the alleged crime.
Truong My Lan’s journey from a market stall vendor to a prominent business figure reflects Vietnam’s economic evolution. However, her case sheds light on the dark side of Vietnam’s economic growth: endemic corruption. Despite regulations limiting individual ownership in banks, prosecutors claim Truong My Lan controlled over 90% of Saigon Commercial Bank through shell companies.
The trial is not only about justice but also about politics. It marks a significant chapter in Vietnam’s anti-corruption campaign led by Communist Party Secretary-General Nguyen Phu Trong. Trong aims to curb corruption, which he sees as a threat to the party’s power.
However, the trial also raises questions about the government’s oversight and the entrenched influence of powerful figures in business and politics.
Despite efforts to combat corruption, there’s a dilemma: cracking down too hard could stifle economic activity vital for Vietnam’s growth ambitions.
As the trial unfolds, it underscores the complex interplay between corruption, economic development, and political power in Vietnam.
Source: BBC