HANOI: The chairwoman of major property developer Van Thinh Phat will go on trial in Vietnam, accused with accomplices of embezzling US$12.5 billion from a bank “for personal purposes”, the official government website said.
Truong My Lan will be tried at the Ho Chi Minh City People’s Court, the website reported on Sunday (Dec 17), without specifying when the trial would start.
She will be prosecuted for embezzlement, bribery, and violating banking regulations.
Lan is accused of setting up fake loan applications to withdraw money from Saigon Commercial Bank, where she held more than 90 per cent of the bank’s shares, according to the government website.
“From Feb 9, 2018 to Oct 7, 2022, Truong My Lan gave orders to set up 916 fake loan applications, appropriating more than 304 trillion dong (US$12.5 billion) from SCB,” it said.
Eighty-five others, including a former official at the State Bank of Vietnam who is accused of accepting US$5.2 million in bribes, will also face trial at the court in Ho Chi Minh City.
Founded in 1992, Van Thinh Phat owns high-end hotels, restaurants and luxury apartments, and has also invested in financial services.
The value of Lan’s alleged asset appropriation is equivalent to about 3 per cent of Vietnam’s total GDP for 2022.
Vietnam has seen a sweeping government crackdown on corrupt officials and members of the country’s business elite in recent years.
The sweep has been driven by powerful Communist Party Secretary General Nguyen Phu Trong, who last month demanded the purge press ahead “faster and in a more efficient manner”.
More than 3,500 people have been indicted across more than 1,300 graft cases since 2021.
In November, prosecutors announced charges against Truong Quy Thanh, the head of Tan Hiep Phat Group – which makes some of the country’s most popular soft drinks – for appropriating US$31.5 million along with his two daughters.
Do Anh Dung, chairman of property developer Tan Hoang Minh Group, is to be prosecuted for illegally acquiring US$355 million in a bond sale to more than 6,500 investors.