Vietnam tycoon will not face death penalty over $27 billion fraud

Vietnamese property tycoon Truong My Lan, in blue, sentenced to death for fraud totaling $27 billion, will no longer face execution as the country abolished capital punishment for eight crimes, including property embezzlement. (AFP)
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Updated 25 June 2025
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Vietnam tycoon will not face death penalty over $27 billion fraud

  • Truong My Lan was convicted last year of swindling money from Saigon Commercial Bank and sentenced to death for fraud
  • Tens of thousands of people who had invested their savings in the bank lost money, prompting rare protests in the communist nation

HANOI: A Vietnamese property tycoon sentenced to death for fraud totaling $27 billion will no longer face execution, her lawyer said Wednesday, as the country abolished capital punishment for eight crimes, including property embezzlement.

Property developer Truong My Lan’s lawyer Giang Hong Thanh said that her death penalty “will be converted to life imprisonment... I informed Ms. Lan this morning, she is very happy.”

Vietnam on Wednesday abolished the death penalty for eight crimes including espionage, graft and attempting to overthrow the government, according to state media.

Lan, 68, was convicted last year of swindling money from Saigon Commercial Bank (SCB) – which prosecutors said she controlled – and sentenced to death for fraud with damages totaling $27 billion – equivalent to around six percent of the country’s GDP.

She appealed the verdict in a month-long trial, but in December the court in Ho Chi Minh City determined that there was “no basis” to reduce her sentence.

But the court said Lan’s sentence could be reduced to life imprisonment if she returned three quarters of the stolen assets.

“If Ms Lan compensates for three quarters of the losses along with some other conditions, she will continue to be considered for a further reduction of her sentence,” lawyer Thanh said Wednesday.

Lan “is still actively cooperating with state agencies of Vietnam and her partners to find ways to deal with (her) assets and restructure SCB to come to a final solution to the case.”

Lan owned just five percent of shares in SCB on paper but courts concluded that she effectively controlled more than 90 percent through family, friends and staff.

Tens of thousands of people who had invested their savings in the bank lost money, prompting rare protests in the communist nation.

In a separate $17 billion money-laundering case, Lan had a life imprisonment sentence cut to 30 years on appeal in April.

According to the amended penal code approved by the National Assembly Wednesday, the eight crimes no longer punishable by death include property embezzlement and bribe-taking.

Under Vietnamese law, those sentenced to death for the eight crimes – which also include spying and anti-state activities – before July 1 will have their sentences converted to life imprisonment by the chief judge of the Supreme People’s Court.

Minister of Public Security Luong Tam Quang said “the current structure of capital punishment was problematic and, in some cases, misaligned with evolving socio-economic conditions and the realities of crime prevention.”

One of the reasons for the move given by Minister of Justice Nguyen Hai Ninh was that in most cases people sentenced to death for the above crimes were not actually executed.

The number of executions has not been made public, but Amnesty International estimates more than 1,200 people were on death row in Vietnam by the end of 2024.


Somalia denounces Israeli recognition of Somaliland

A man holds a flag of Somaliland in front of the Hargeisa War Memorial monument in Hargeisa on November 7, 2024. (AFP)
Updated 8 sec ago
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Somalia denounces Israeli recognition of Somaliland

  • Israel repeatedly hit targets in Yemen after the Gaza war broke out in October 2023, in response to Houthi attacks on Israel that the rebels said were in solidarity with Palestinians in the Gaza Strip
  • Egypt’s foreign ministry said its top diplomat had spoken with his counterparts from Turkiye, Somalia and Djibouti, who together condemned the move and emphasized “their full support for the unity, sovereignty and territorial integrity of Somalia”

MOGADISHU: Somalia reacted angrily Friday after Israel formally recognized its northern region of Somaliland as an “independent and sovereign state” — the first country country to do so.
Somaliland, which declared independence from Somalia in 1991, has for decades pushed for international recognition, which has been the key priority for president Abdirahman Mohamed Abdullahi since he took office last year.
But a Somali foreign ministry statement warned that the decision was “deliberate attack” on its sovereignty that would undermine peace in the region. Several other countries also condemned Israel’s decision.
Israeli Prime Minister Benjamin Netanyahu’s office said he announced “the official recognition of the Republic of Somaliland as an independent and sovereign state,” making Israel the first country to do so.
“The declaration is in the spirit of the Abraham Accords,” Netanyahu’s office said, referring to several agreements between Israel and Arab countries brokered by US President Donald Trump during his first presidency to normalize ties with Israel.
It said Netanyahu had invited Abdullahi to visit.
Hailing Israel’s decision, Abdullahi said in a post on X that it marked the beginning of a “strategic partnership.”
“This is a historic moment as we warmly welcome” he said, affirming “Somaliland’s readiness to join the Abraham Accords,” he added.
In Hargeisa, the capital of Somaliland, crowds of people took to the streets to celebrate, many carrying the flag of the breakaway state, said sources.

- ‘Illegitimate actions’ -

Somalia’s foreign ministry said: “Illegitimate actions of this nature seriously undermine regional peace and stability, exacerbate political and security tensions, in the Horn of Africa, the Red Sea and Gulf of Aden, the Middle East and the wider region.”
Turkiye, a close ally of Somalia, also condemned the move.
“This initiative by Israel, which aligns with its expansionist policy... constitutes overt interference in Somalia’s domestic affairs,” it said in a foreign ministry statement.
Egypt’s foreign ministry said its top diplomat had spoken with his counterparts from Turkiye, Somalia and Djibouti, who together condemned the move and emphasized “their full support for the unity, sovereignty and territorial integrity of Somalia.”
In video showing Netanyahu speaking to Abdullahi by telephone, the Israeli leader said: “I want you to know that I am signing now as we speak Israel’s official recognition of the Somaliland,” adding that the new relationship would offer economic opportunities.
“I am very, very happy and I am very proud of this day and I want to wish you and the people of Somaliland the very, very best,” he said.
Netanyahu also said that he would communicate to Trump Abdullahi’s “willingness and desire to join the Abraham accords.”
A self-proclaimed republic, Somaliland enjoys a strategic position on the Gulf of Aden, has its own money, passports and army. But since its unilateral declaration of independence in 1991, it has grappled with decades of isolation.

- Strategic -

Analysts say matters of strategy were behind Israel’s drive to recognize Somaliland.
“Israel requires allies in the Red Sea region for many strategic reasons, among them the possibility of a future campaign against the Houthis,” said the Institute for National Security Studies in a paper last month, referring to Yemen’s Iran-backed rebels.
“Somaliland is an ideal candidate for such cooperation as it could offer Israel potential access to an operational area close to the conflict zone,” it said, adding there were also economic motives.
Israel repeatedly hit targets in Yemen after the Gaza war broke out in October 2023, in response to Houthi attacks on Israel that the rebels said were in solidarity with Palestinians in the Gaza Strip.
The Houthis have halted their attacks since a fragile truce began in Gaza in October.
Somaliland’s lack of international recognition has hampered access to foreign loans, aid and investment, and the territory remains deeply impoverished.
A deal between landlocked Ethiopia and Somaliland last year to lease a stretch of coastline for a port and military base enraged Somalia.
Israel has been trying to bolster relations with countries in the Middle East and Africa.
Historic agreements struck late in Trump’s first term in 2020 saw several countries including Muslim-majority United Arab Emirates and Morocco normalize relations with Israel, but wars that have stoked Arab anger, particularly in Gaza, have hampered recent efforts.