A court in Vietnam yesterday upheld the death sentence for real estate tycoon Truong My Lan after rejecting her appeal against a conviction in a generational corruption case.
In upholding the death sentence, judges at the High People’s Court of Ho Chi Minh City stated that Lan’s multibillion-dollar theft had caused grave consequences, and there were no mitigating circumstances that would allow a reduction of her sentence, VnExpress reported.
In April, Lan, the head of the real estate company Van Thinh Phat, was sentenced to death on multiple counts of bribery, violating banking regulations, and embezzlement totaling 304 trillion dong ($12.54 billion). Prosecutors allege that she secretly controlled Saigon Commercial Bank, and took out 2,500 loans through “thousands of ghost companies,” costing the bank $27 billion in losses between 2012 and 2022.
Earlier in the hearing, prosecutors stated that the 68-year-old’s actions had “affected many aspects of society, the financial market, the economy.”
They added, “The consequences Lan caused are unprecedented in the history of litigation and the amount of money embezzled is unprecedentedly large and unrecoverable.”
Lan’s lawyer said she had many mitigating circumstances, including “having admitted guilt, showing remorse and paying back part of the amount of money embezzled,” but prosecutors said that was insufficient. For her own part, Lan has expressed regret at the massive loss that her actions have incurred, stating that her only thought was to pay back what she had taken.
However, they did reference a provision in the Vietnamese Penal Code stating that a death sentence for embezzlement may be reduced if the defendant voluntarily returns at least 75 percent of the misappropriated assets and cooperates with the authorities – an amount totaling just over $11 billion. Lan’s lawyers say she has already returned over VND 323 trillion, “exceeding 75 percent of the damages calculated by the prosecution,” according to VietnamNet.
While the court yesterday disagreed, arguing that prosecuting agencies couldn’t assess the value of seized properties, the clause offers Lan a potential means of pursuing a last-minute reprieve. Lan has the right to appeal for clemency from the president within seven days of the judgment.
Lan’s lawyer Nguyen Huy Thiep told the BBC prior to yesterday’s hearing that the “total value of her holdings actually exceeds the required compensation amount,” and that the defense team would ask the court for extra time to recover the assets.
“However, these require time and effort to sell, as many of the assets are real estate and take time to liquidate,” he told the news agency. “Truong My Lan hopes the court can create the most favorable conditions for her to continue making compensation.”
Lan’s trial is one of the most sensational to have resulted from the “blazing furnace” anti-corruption campaign, which has swung like a scythe through the upper ranks of the business community and the ruling Communist Party of Vietnam. In a separate trial in October, Lan was sentenced to life in prison for fraud, money laundering, and cross-border currency trafficking. Scores of family members and accomplices have also been sentenced to lengthy prison terms.
Whether or not Lan is granted clemency will perhaps offer an indication of how assiduously new CPV General Secretary To Lam intends to pursue the anti-graft campaign, which was initiated by his late predecessor Nguyen Phu Trong. As VietnamNet reported, “The outcome will not only shape her future but also set a precedent for handling high-profile financial crimes in Vietnam.”
As minister of public security, Lam was a key figure in the prosecution of the anti-graft campaign, and since his appointment as party chief has pledged to leave “no stone unturned” in the fight against corrupt activities. He repeated the message in an address in Hanoi yesterday, during which he “affirmed that the Party continues to comprehensively and resolutely fight against corruption, negativity, and wastefulness to ensure that the political system is truly clean, and strong, and genuinely of the people, by the people, and for the people,” the Voice of Vietnam reported.
In these circumstances, even if Lan is eligible to have her death sentence commuted, it would not be surprising if the authorities decided to make an example of her – and send a message that under a new leader, the purifying flames will burn hotter than ever.