How 5 former SCB leaders helped real estate tycoon Truong My Lan scam $19B

The five, including two former chairpersons, have been ordered by the People’s Court of HCMC to turn themselves in before the trial on March 5 failing which they will be tried in absentia.

A composite image featuring a portrait of former SCB Chairwoman Nguyen Thi Thu Suong alongside a police arrest warrant. Photo courtesy of the Ministry of Public Security

The five are former chairman and chairwoman Dinh Van Thanh and Nguyen Thi Thu Suong, former deputy CEO Chiem Minh Dung, former director Tram Thich Ton, and former manager of a branch, Nguyen Lam Anh Vu.

The five face trial for violating bank regulations, and Thanh is also charged with embezzlement.

Prosecutors said in 2011 Lan acquired three private banks to merge with SCB, which she used as though it were her own private bank to finance her company, property developer Van Thinh Phat, and its ecosystem.

She made Thanh chairman of the bank from 2012 to 2020, when he resigned and left the country.

During his tenure Thanh had overseen the creation of three new units meant exclusively to appraise Lan and Van Thinh Phat’s illegal loan applications.

He approved 479 loans worth VND422 trillion including interest as of October 2022 that went to Lan for using for her own purposes.

These caused a loss of VND330 trillion to SCB after deducting the value of collateral.

Dung worked at SCB from 2012 to 2019 in various positions including that of deputy chairman.

He approved 362 loans worth VND218 trillion, which caused losses of VND140.7 trillion.

Suong was another alleged co-conspirator with Lan, helping her buy a 30% stake from a Singaporean shareholder in De Nhat Bank, one of the three lenders Lan merged to form SCB.

A collage of Saigon Commercial Bank leaders. First row, L to R: former chairwoman Nguyen Thi Thu Suong, former chairman Dinh Van Thanh, former branch manager Nguyen Lam Anh Vu, former director Tram Thich Ton; second row: director Sun Henry Ka Zian, director Lam Lee George, and former CEO Chiem Minh Dung. Photo courtesy of the Ministry of Public Security

In 2012-13 Suong approved loans worth VND55.8 trillion, causing losses of VND7 trillion.

During the same period Ton approved VND56.4 trillion worth of loans to Van Thinh Phat’s associate companies, causing losses of VND7.17 trillion.

Vu gave loans of VND4.48 trillion in 2014 and 2015 to Van Thinh Phat employees causing losses of VND3.76 trillion.

While Lan ostensibly did not have direct executive power at the bank, she owned 91.5% of its shares through other people.

Between 2012 to 2022 her inner circle took more than 2,500 loans at SCB worth more than VND1 quadrillion ($44 billion), or 93% of the bank’s total loans.

The sum is equivalent to 10.7% of Vietnam’s 2022 GDP of $409 billion.

As of 2022 Lan was responsible for 1,300 outstanding unpaid loans worth VND677 trillion. They have been categorized as "unable to collect."

Lan and her accomplices caused losses to SCB estimated at VND498 trillion.

She will be tried for bribery, violating bank regulations and embezzlement.

Apart from Lan and the five former SCB leaders, eighty other people have been charged with similar crimes besides "abuse of power and position while performing official duties" and "lack of responsibility causing serious consequences."

Chinese national Sun Henry Ka Ziang, a director at SCB, and Canadian national Lam Lee George, a former director, have gone into hiding and will be investigated separately.