The trial of Truong My Lan, a 67-year-old Vietnamese property developer, was nothing short of sensational, marking one of the largest bank fraud cases globally.
Convicted in Ho Chi Minh City for defrauding a major bank of $44 billion over 11 years, she faces the death penalty, a rare outcome for white-collar crimes in Vietnam, especially among women. Lan's case highlights the extreme measures being taken to address the immense fraud, with a court order to repay $27 billion, a sum that might remain elusive.
This trial stood out for its transparency, involving the testimony of 2,700 individuals, the engagement of 10 state prosecutors, and about 200 lawyers, with evidence amounting to six tonnes across 104 boxes. Lan, among 85 defendants, denied all charges.
The event underscores the extensive "Blazing Furnaces" anti-corruption campaign spearheaded by Communist Party Secretary-General, Nguyen Phu Trong. Aimed at curtailing corruption threatening the party's grip on power, this campaign has led to the resignation and jailing of high-profile figures, now including Lan, one of Vietnam's wealthiest women.
Lan's journey from a market stall vendor to a property mogul reflects Vietnam's economic evolution and the rampant corruption intertwining land access and wealth accumulation. Accused of controlling over 90% of Saigon Commercial Bank through proxies and shell companies, she allegedly directed the approval of massive loans to these entities, contributing to 93% of the bank's lending.
Her arrest raises questions about the prolonged duration of the fraud, given her public financial maneuvers were well-known. The trial also hints at a deeper motive: reasserting the Communist Party's control, especially over the business-dominated south, and addressing the systemic corruption that, while facilitating economic growth, poses significant challenges to governance and the party's future ambitions.