A high court in Vietnam on Tuesday upheld the death sentence of real estate entrepreneur Duong My Lan. Lan’s death sentence was upheld, rejecting his plea of corruption and fraud. The state media has given this information.
Lan is the chairman of Van Thin Phat Holdings Group, a well- known construction company in Vietnam. He was sentenced to death in April 2023 for his involvement in the $12 billion fraud in the country’s biggest ever financial fraud case.
South Vietnam’s High Court in Ho Chi Minh City ruled there was no basis to commute Lan’s sentence. Online newspaper VnExpress gave this information. However, if Lan repays three- fourths of the amount he was convicted of while on death row, his death sentence could be commuted to life imprisonment, the report said.
Lan is one of the most prominent businessmen arrested in Vietnam’s communist regime’s long- running anti- corruption campaign known as “Blazing Furnace”.
During the hearing of the case, the public prosecutor said, “Lan’s actions are unique in the history of prosecutions, the amount defrauded is enormous and it is impossible to recover it.” Also, “their actions have had a far- reaching impact on society, financial markets and the economy,” the lawyers noted.
Lan’s lawyers argued that “Lan has admitted his mistake, apologized and returned some of the fraud.” But according to government prosecutors, these efforts are insufficient.
Lan still has the right to seek a review of the sentence through Vietnam’s cassation or reconsideration process.
After Lan’s arrest in 2022, the deposits at the Saigon Joint Stock Commercial Bank (SCB), the centerpiece of his fraud, increased dramatically. The bank was mainly owned by Lan’s hands.
Vietnam’s central bank injected $24 billion in “special loans” to SCB until April 2023 to deal with the situation. This type of banking rescue was seen for the first time in the country’s history.
In addition to the death penalty, in a separate trial in October 2023, Lan was sentenced to life imprisonment for obtaining property by fraud, money laundering and illegal foreign financial transfer.
The verdict against Lan is considered important for the anti- corruption campaign in Vietnam. However, this case has greatly affected the financial system of the country and questions have also arisen about future financial security measures.