Vietnam rescues bank tied to US$12bil fraud case

HANOI: Vietnam has mounted a rescue of a bank tied to real estate tycoon Truong My Lan, who was sentenced to death last week for her role in a US$12 billion fraud case, Reuters reported.

Without government assistance, Saigon Commercial Bank, also known as SCB, will collapse, Reuters reported, citing three bank documents and an unidentified person with access to the documents.

Representatives of Vietnam’s central bank did not immediately reply to requests for comment from Bloomberg News.

The State Bank of Vietnam had funnelled nearly $24 billion in "special loans” into SCB as of early April, according to one of the bank documents seen by Reuters.

The October 2022 arrest of Lan, 67, chairwoman of Van Thinh Phat Holdings Group, led to a bank run on SCB. The central bank eventually took over the institution.

Lan’s lawyer Giang Hong Thanh said in March she did not intentionally violate the law or cause damage to the state or depositors. She was convicted April 11 of bribing government inspectors and embezzling more than $12 billion from SCB between Feb. 2018 and Oct. 2022 - a sum that surpasses the market capitalisation of most Vietnamese banks.

Prosecutors said she illegally controlled more than 90% of SCB by paying 27 individuals and entities to acquire stakes in the institution. - Bloomberg

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Vietnam , SCB , bank , rescue , fraud


Next In Aseanplus News

UN warns of further 'atrocities' in Myanmar
Vietnam parliament elects new speaker amid leadership reshuffle
TikTok parent ByteDance now has China’s most popular AI chatbot
Things to know about an AI safety summit in Seoul
TikTok considers letting users upload videos 60 minutes long
Orang utan not to be gifted to trading countries, should remain in habitat, says Sarawak minister
Indonesia lowers 2025 GDP growth forecast, keeps budget gap plan
In a boiling world, chief heat officers battle 'silent killer'; millions of people are badly affected
South Korea and Britain host AI summit with safety top of agenda
Singapore police and DBS recover 70-year-old scam victim’s RM590,000

Others Also Read