Major financial scandal; even faces the death penalty: real estate mogul stole 11 billion francs

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Vietnam is in shock: The biggest financial scandal in the country’s history is currently shaking the country greatly. At the center is powerful real estate developer Truong My Lan (67). Charge: robbery. And on a very large scale. This is an incredible 304 trillion dong, equivalent to approximately 11 billion francs.

The main defendant, Truong My Lan, chairman of property developer Van Thinh Phat Holdings, is said to have been undermining the financial system for years. Among other things, he saved the Saigon Commercial Bank (SCB), in which he owned a stake, from huge sums of money. Fraud: Truong is said to have established more than 1,000 domestic and foreign subsidiaries and shell companies in order to fraudulently obtain more than $43 billion in loans – about a third of which he is said to have diverted using these “ghost companies.” A local media report states that his driver took all the cash packages to his home.

Large protests in Hanoi

Truong My Lan faces the death penalty if convicted. However, it is said that he did not act alone. He has a network of family and allies around him. Vietnam’s Ministry of Public Security charged 85 people, including government officials and partners of the Van Thinh Phat real estate group and SCB bank. It is said that even 15 employees of the Central Bank of Vietnam helped the real estate mogul.

The Vietnamese people are angry. There have already been protests in the capital Hanoi and the Ho Chi Minh City metropolis. A rare situation in a one-party communist state that does not tolerate dissent. On the other hand, it is not surprising because since SCB is involved in the scandal, its customers are also affected. Police have already identified nearly 42,000 victims.

politically controversial

Along with the protests, the incident also shakes Vietnam’s entire banking system. Experts told Yahoo News they are calling for stricter regulations and more intensive testing to prevent such incidents in the future.

The scandal is also politically explosive. Nguyen Phu Trong, general secretary of Vietnam’s ruling Communist Party, said anti-corruption efforts that began in 2016 are not over yet. Thanks to this campaign, Truong My Lan was brought to justice. At the same time, there is a barrage of criticism in the country: the fight against corruption is just a pretext and only serves to strengthen the party’s legitimacy.

Vietnam, of all places

Meanwhile, economists worry that the anti-corruption wave could jeopardize Vietnam’s economic stability. In fact: Local authorities and authorities are reluctant to approve infrastructure investments; Fear of corruption allegations paralyzes them. Experts warn that investigations in the private sector are having a serious impact on the business environment and fueling general fear of the Communist Party and its investigations.

The country, once seen as a beacon of economic hope, is now the scene of a major financial scandal. Vietnam, a country mired in greed and corruption, is struggling for its reputation and the future of its economy. (nim)

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Source :Blick