Truong My Lan, the chairwoman of Van Thinh Phat, withdrew an astounding VND1 quadrillion (US$44 billion) from SCB over a span of ten years, employing various tactics to obscure the illicit movement of funds, as outlined by prosecutors.
From 2012 to October 2022, Truong My Lan orchestrated the disbursement of 2,500 loans amounting to VND1 quadrillion through Saigon Commercial Bank (SCB). These details were disclosed by the Supreme People’s Procuracy of Vietnam in the context of charges including bribery, violations of banking regulations, and embezzlement leveled against her.
The sum of over VND1 quadrillion constitutes a staggering 93% of the total loans issued by SCB during this period. This amount is equivalent to 22.6% of Vietnam’s GDP as of the end of September. It surpasses the investment budget of the Long Thanh International Airport and is seven times greater than that of the 12 high-speed expressways spanning from northern to southern Vietnam.
Repayment status remains uncertain, but records as of October 2022 indicate that Lan, along with her associates, is responsible for at least 1,284 unpaid debts at SCB, totaling VND677 trillion. Out of this amount, VND525 trillion has been confirmed as disbursed.
Lan retained control of 88% of the disbursed funds, which were either transferred to different banks or withdrawn in cash. The remaining 12% was allocated in part to settle SCB’s outstanding debts and in part was circulated among various SCB accounts.
While the prosecutors did not disclose specific details of the fund’s utilization by Lan, they highlighted that the funds were frequently circulated within accounts belonging to individuals and entities integrated into Van Thinh Phat’s corporate network, a strategy employed to avoid financial scrutiny.
Lan managed around 1,000 untraceable entities, referred to as “ghost” companies, registered both domestically and internationally, all operating under the Van Thinh Phat umbrella. These entities served as conduits for the continuous flow of loaned funds.
The cash was regularly transported to either Lan’s residence or the Van Thinh Phat headquarters, both located in Ho Chi Minh City. Prosecutors have officially accused her of misappropriating VND304 trillion from SCB.
According to police reports, starting from the end of 2011, Lan began using other individuals’ names to acquire majority ownership in joint-stock commercial banks such as Saigon Commercial JSC, Vietnam Tin Nghia, and De Nhat. Investigation findings indicated that Lan’s family members held senior positions at these banks, essentially operating in her interest.
Lan was arrested last October on charges of alleged fraud related to the issuance and trading of bonds worth trillions of dong (VND1 trillion = $41.87 million).
