Vietnam arrests real estate tycoon over financial frauds

HANOI, Oct 8 (Reuters) – A Vietnamese actual property tycoon was arrested on suspicion of monetary fraud, the police mentioned on Saturday, because the nation broadens its years-long anti-graft drive.

Truong My Lan, chairwoman of Ho Chi Minh Metropolis-based Van Thinh Phat Holdings Group, was accused of illegally issuing bonds to boost trillions of dong (tens of tens of millions of {dollars}) from buyers in the course of the 2018-2019 interval, the Ministry of Public Safety mentioned in a information launch on Saturday.

“Additional investigation is underway to make clear the frauds,” the ministry mentioned.

Lan’s firm didn’t instantly reply to Reuters request for remark.

Vietnam lately broadened its anti-graft drive with a sequence of high-profile company arrests, together with prime stockbrokers, property builders and even regulators.

Three others accused of involvement in Lan’s case had been additionally arrested, the police-run ministry mentioned on Saturday.

The ministry mentioned on Friday there had been irregularities in Van Thinh Phat Holdings’ acquisition of a number of state-owned land slots at prime areas in downtown Ho Chi Minh Metropolis.

Rumours concerning the imminent arrest of Lan earlier on social media this week had triggered a run on Saigon Joint Inventory Business Financial institution (SCB) over suspicions of ties between Lan and the financial institution.

Vietnam’s central financial institution on Saturday reassured depositors at SCB and mentioned it was monitoring the state of affairs there.

“The State Financial institution of Vietnam affirmed that it’s going to have options and insurance policies in accordance with the regulation to make sure the rights and pursuits of depositors, preserve the soundness of SCB particularly and the system of credit score establishments basically,” the central financial institution mentioned in an announcement.

Calls to SCB went unanswered on Saturday.

($1 = 23,875.0000 dong)

Reporting by Khanh Vu; Modifying by William Mallard

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