Vietnamese tycoon launches appeal against death sentence

By Mike Firn for RFA2024.11.04

A court in Vietnam began hearing real estate tycoon Truong My Lan’s appeal against the death sentence on Monday, in a case that has highlighted the extent of an anti-corruption campaign known as the “blazing furnace.”

The chairwoman of property giant Van Thinh Phat was found guilty in April of embezzling billions of dollars from Saigon Commercial Bank, or SCB, in the country’s biggest fraud case.

The court ordered her to repay US$27 billion in loans received from SCB by Van Thinh Phat. Lan is also appealing against this ruling.

Lan, 68, was sentenced to death in April for masterminding the fraud. She was also sentenced at that time to 40 years in prison for bribery and violating bank regulations.

At the end of a second trial in October, she was sentenced to life in prison for fraudulent property appropriation, 12 years for laundering more than $18 billion, and eight years for illegally transferring $1.5 billion out of the country and receiving $3 billion from abroad.

Over the course of the two trials the court in Vietnam’s business capital, Ho Chi Minh City, heard that Lan had ordered senior staff at Van Thinh Phat, SCB and Tan Viet Securities to issue more than 300 million bonds, allowing her to appropriate $1.2 billion from nearly 36,000 investors.

The other defendants included her husband Eric Chu, who received a nine-year sentence, and her niece Truong Hue Van, who received a 17-year prison term.

Vietnam has been cracking down on corruption in the ruling Communist Party and its dealings with key sectors such as property and healthcare.

The Van Thinh Phat scandal netted State Bank of Vietnam chief inspector Do Thi Nhan. He was sentenced to life in prison for accepting $5.2 million from Lan, VnExpress reported.

The “blazing furnace” campaign was spearheaded by former party general secretary Nguyen Phu Trong and has been sustained by his successor To Lam.

The campaign has claimed the jobs of prime ministers and powerful politburo members accused of benefiting from contracts for COVID-19 test kits and coronavirus repatriation plans among other scandals, and for allowing bribery and embezzlement to take place under their watch.

The People’s High Court will consider the appeals of 46 other defendants this month, according to the Vietnam News, with the hearings expected to last 20 days.

Vietnam applies the death penalty for accepting bribes worth an equivalent of $42,500 or accepting bribes that cause property damage over $212,500, according to the 2015 Criminal Law. However, the law states that if the offender returns at least three-quarters of the money the death penalty will be commuted.

Edited by RFA Staff.