Who is Truong My Lan and why has she been sentenced to death?
TRUONG My Lan is one billionaire who most certainly isn’t above the law.
Here we take a look at who she is and why she received a death sentence.
Who is Truong My Lan?
Truong My Lan, 67, is a billionaire Vietnamese real estate tycoon.
She was raised in Ho Chi Minh City, then known as Saigon, by a Sino-Vietnamese family.
Truong My Lan began her career selling cosmetics at market stalls alongside her mother.
But once the Communist Party ushered in a phase of economic reform known as Doi Moi in 1986, she started investing in real estate.
She possessed a sizable portfolio of hotels and restaurants by the 1990s, going on to became an incredibly successful property developer.
What is Truong My Lan’s net worth?
There are currently no reports stating Truong My Lan’s net worth.
It is very possible that the true extent of her wealth is unknown.
Why has Truong My Lan been sentenced to death?
By 2011, as a well-known businesswoman in Ho Chi Minh City, Truong My Lan was able to coordinate the combination of three smaller, financially struggling banks to become Saigon Commercial Bank.
In Vietnam, it is illegal to own more than 5% of the shares in a bank.
However, the prosecution claims that Truong My Lan truly owned more than 90% of Saigon Commercial through hundreds of shell corporations and proxies.
They said that she appointed her own employees as managers, giving them orders to grant hundreds of loans to her network of sham firms.
The sums extracted are astounding as 93 per cent of the bank’s loans came from her.
Prosecutors claim that from February 2019 she instructed her driver to take out 108 trillion Vietnamese dong — more than $4 billion (£2.3 billion) — in cash from the bank and stash it in her basement over a three-year period.
Even with Vietnam’s highest denomination bills, so much cash would weigh over two tonnes.
She was also charged with paying lavish bribes to make sure her loans were never investigated, with one of the defendants in her trial being a former central bank chief inspector who was charged with receiving a $5million bribe.
Le Hong Hiep from the Yusof Ishak Institute in Singapore told the BBC he was left completely “puzzled” by the scheme.
“Because it wasn’t a secret,” he said.
“It was well known in the market that Truong My Lan and her Van Thinh Phat group were using SCB as their own piggy bank to fund the mass acquisition of real estate in the most prime locations.
“It was obvious that she had to get the money from somewhere. But then it is such a common practice.
“SCB is not the only bank that is used like this. So perhaps the government lost sight because there are so many similar cases in the market.”
In a rare verdict, the property developer has now become one of the very few Vietnamese women to be sentenced to death for a white collar crime.
The verdict reflects the astounding extent of the fraud as Truong My Lan was found guilty of taking out $44 billion (£35 billion) in loans from the Saigon Commercial Bank.
That is approximately 9.36% of Vietnam’s 2024 GDP.
Truong My Lan denied the charges against her.
She will now have to refund $27 billion, as per the court verdict, which prosecutors say may never be recovered.
“The defendant’s actions… eroded people’s trust in the leadership of the (Communist) Party and state,” read the verdict at the trial in Ho Chi Minh City.
Some observers believe the death penalty by lethal injection verdict is a way to encourage Truong My Lan to return some of the missing billions.
The death penalty around the world
There are 54 countries worldwide still retaining the capital punishment in law and practice.
Some of them include:
VIETNAM: In Vietnam, the death penalty can be imposed for a variety of crimes, including drug trafficking, murder, and other serious offences. The methods of execution typically include lethal injection and firing squad.
UNITED STATES: In the United States, the death penalty remains a controversial topic. While it is legal at the federal level and in many states, its use has declined over the years due to concerns about fairness, effectiveness, and the risk of executing innocent people. Some states have abolished it altogether, while others still actively carry out executions, though less frequently than in previous decades.
CHINA: In China, the death penalty is still used extensively, with thousands of executions reported each year. The exact number of executions is considered a state secret, but China is believed to have one of the highest execution rates in the world. The death penalty can be applied to a wide range of crimes, including non-violent offences such as drug trafficking.
IRAN: In Iran, the death penalty is also used extensively, often for crimes such as drug trafficking, murder, adultery, and political dissent. The methods of execution include hanging, stoning, and firing squad.
SAUDI ARABIA: In Saudi Arabia, the death penalty is used as a punishment for various crimes, including murder, drug trafficking, apostasy, and sorcery. Executions are typically carried out by beheading in public squares, although other methods such as firing squad and stoning have also been reported.
NORTH KOREA: North Korea is known to have one of the most secretive and authoritarian regimes in the world, and information about its legal system, including the use of the death penalty, is limited and often difficult to verify. However, reports from defectors and human rights organisations suggest that executions, including public executions, are carried out for various offences deemed as threats to the regime’s power. These offences may include political dissent, attempting to defect, or other acts perceived as disloyal to the government. Officially, the North Korean government does not release information about the use of the death penalty.
SINGAPORE: Singapore retains the death penalty and applies it for certain serious crimes, such as drug trafficking and murder. The country has strict laws regarding drug offenses, with the death penalty being mandatory for certain quantities of illegal drugs. Singapore’s government argues that the death penalty is necessary to maintain public safety and deter crime. Executions are typically carried out by hanging.