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Vietnam is facing its largest banking scandal, with the recent arrest of real estate developer, Truong My Lan, accused of embezzling around 304 trillion dong (approximately $12.4 billion).
The embezzlement: On Nov. 17, Vietnam's Ministry of Public Security alleged that Truong, the 79-year-old chairwoman of Van Thinh Phat Group, embezzled from Saigon Commercial Bank (SCB), where she was a majority stakeholder. Over several years, Truong allegedly operated over 1,000 domestic and foreign subsidiaries and shell companies, securing more than $43 billion in loans from SCB, with approximately one-third of this sum misappropriated through the creation of "ghost companies" by Truong, her family and associates.
The scandal has exposed weaknesses in the banking system, with calls for improved professional training, tighter regulations and enhanced inspection mechanisms to prevent further abuse.
Others involved: The ruling Vietnamese Communist Party has been conducting an anti-corruption campaign since 2016, resulting in the removal of top officials. In the latest scandal, the ministry has recommended the prosecution of 85 individuals, including government officials and associates of Van Thinh Phat Group and SCB, while the Communist Party's Central Internal Affairs Committee called for investigations into 23 state officials, including 12 from the State Bank of Vietnam.
www.yahoo.com
The embezzlement: On Nov. 17, Vietnam's Ministry of Public Security alleged that Truong, the 79-year-old chairwoman of Van Thinh Phat Group, embezzled from Saigon Commercial Bank (SCB), where she was a majority stakeholder. Over several years, Truong allegedly operated over 1,000 domestic and foreign subsidiaries and shell companies, securing more than $43 billion in loans from SCB, with approximately one-third of this sum misappropriated through the creation of "ghost companies" by Truong, her family and associates.
The scandal has exposed weaknesses in the banking system, with calls for improved professional training, tighter regulations and enhanced inspection mechanisms to prevent further abuse.
Others involved: The ruling Vietnamese Communist Party has been conducting an anti-corruption campaign since 2016, resulting in the removal of top officials. In the latest scandal, the ministry has recommended the prosecution of 85 individuals, including government officials and associates of Van Thinh Phat Group and SCB, while the Communist Party's Central Internal Affairs Committee called for investigations into 23 state officials, including 12 from the State Bank of Vietnam.
Vietnam rocked by $12.4 billion banking corruption scandal — Southeast Asia's largest ever
Vietnam is facing its largest banking scandal, with the recent arrest of real estate developer, Truong My Lan, accused of embezzling around 304 trillion dong (approximately $12.4 billion). The embezzlement: On Nov. 17, Vietnam's Ministry of Public Security alleged that Truong, the 79-year-old...
