Vietnam Shaken by the Largest Corruption Scandal in Southeast Asia Worth Rp191 Trillion

Vietnam Diguncang Skandal Korupsi Terbesar se-Asia Tenggara Senilai Rp191 Triliun

"Vietnam Shaken by the Biggest Corruption Scandal in Southeast Asia Worth IDR 191 Trillion"

Vietnam Shaken by the Largest Corruption Scandal in Southeast Asia Worth Rp191 Trillion

Dream - Vietnam is shaken by its biggest corruption scandal, after last month a real estate developer suspected of embezzling nearly US$12.4 billion or equivalent to Rp191 trillion was arrested. This amount is equivalent to more than 3% of the country's Gross Domestic Product (GDP).

Corruption Rp191 Trillion

On November 17, 2023, the Ministry of Public Security of Vietnam accused Truong My Lan, the chairman of real estate developer Van Thinh Phat Holdings Group. He is suspected of embezzling approximately 304 trillion dong or Rp191 trillion from Saigon Commercial Bank, where he was the majority shareholder for several years.

Quoted from timesofoman.com, Truong My Lan, who was first arrested last year, operated a vast network with over 1,000 subsidiaries both domestically and internationally.

"Borrow from the Bank"

He borrowed more than €40 billion or Rp618 trillion from Saigon Commercial Bank, and took a third of it through "shadow companies" that he created with his family and associates.

In mid-November, the Ministry of Public Security also recommended the prosecution of 85 other individuals, including 24 government officials and associates from Van Thinh Phat Holdings Group and Saigon Commercial Bank.

A few days later, the Central Committee of the Communist Party recommended opening an investigation into 23 other state officials, including 12 individuals from the State Bank of Vietnam, the country's central bank. This scandal is the largest corruption scandal in the history of Southeast Asia. As a comparison, the well-documented 1MDB scandal in Malaysia in the 2010s caused the dominant party in Malaysia to lose power for the first time, involving the theft of €4.1 billion from state funds.

The translation of the text "Dampak ke Sektor Swasta" from Bahasa to English while preserving any HTML tags is: "Impact on the Private Sector".

When a number of private companies are accused of corruption, there is a perception that the anti-corruption campaign is starting to affect the business world's trust.

According to local media reports, government officials and civil servants refuse to sign infrastructure investment agreements because they are afraid of being accused of corruption if the construction projects do not go according to plan.

Considering what has happened so far, the latest corruption scandal may further worsen the business world's trust in Vietnam, or create fear of investigation.

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