Vietnamese tycoon ordered to repay $11 billion to avoid execution – media

Property developer Truong My Lan was convicted for large-scale bribery in April and sentenced to death

A Vietnamese property tycoon convicted of large-scale fraud must return $11 billion to avoid execution by lethal injection, several media outlets have reported. The ultimatum was made by prosecutors in Ho Chi Minh City as part of Truong My Lan’s appeal hearing on Tuesday, according to Bloomberg.

The billionaire, aged 68, was found guilty in April of embezzling US$12.3 billion from Saigon Commercial Bank (SCB) as chairwoman of the real estate developer Van Thinh Phat Holdings Group (VTP). The prosecution stated that Lan effectively controlled the bank using a web of allies and shell companies.

She was sentenced to death by lethal injection for her crimes, which spanned a period of 11 years and involved bribing government officials and violating bank lending rules by issuing fraudulent loans.

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Real estate tycoon sentenced to death for fraud

During the appeal hearing, prosecutors cited the “unprecedented” losses caused by Lan’s actions, which according to various estimates amount to up to 6% of Vietnam’s gross domestic product.

Under Vietnamese law, the defendant must return 75% of the embezzled money to be considered for a less severe sentence.

According to online newspaper VietNamNet, Lan has reportedly recovered the equivalent of more than $12.71 billion, exceeding the amount of damages calculated by the prosecution. The defense had pleaded for leniency and asked the court to spare her the death penalty, the paper reported.

Malaysian tycoon Vincent Tan of Berjaya Corporation has agreed to buy some of Lan’s assets, and other foreign investors are eyeing purchases as well, according to Singaporean financial newspaper The Business Times.

The final verdict in the appeal is expected on December 3, according to VietNamNet.

A total of 86 people have been tried for involvement in Lan’s scheme, including her husband and niece, with four receiving life sentences and the rest handed jail terms of up to 20 years.

READ MORE: Ex-Bank of China chairman slapped with suspended death sentence

Lan’s high-profile trial was part of a wider anti-corruption drive implemented since 2016 by Communist Party Secretary-General Nguyen Phu Trong. The campaign, nicknamed ‘Blazing Furnace’, has seen two presidents, two deputy prime ministers, and thousands of other government officials and business executives sacked, fined, or jailed for graft.