Rajan Mahtani appears in court, pleades not guilty

FORMER Finance Bank chairperson Rajan Mahtani yesterday appeared before Lusaka chief resident magistrate Charles Kafunda and pleaded not guilty to two counts of money laundering and acquiring beneficial interest by importing shares of a bank without approval.

In count one Mahtani, 62, a resident of Finance House Cairo Road, Lusaka is charged with acquiring beneficial interest by importing shares of a bank without prior approval in writing of the Bank of Zambia (BoZ) contrary to section 23 (1), (2) (a), (6) of the banking and financial services Act number 21 of 1994 of the Laws of Zambia.

Particulars of count one allege that Mahtani between January 1, 2003 and December 31, 2009 without the prior approval in writing of BoZ did acquire beneficial interest in the voting shares of Finance Bank Zambia Limited to enable him to control more than 25 pe rcent of the total votes that could be cast on general resolutions at general or special meetings of the bank.

In count two Mahtani was charged with Money Laundering contrary to section 7 of the Prohibition and Prevention of Money Laundering Act number 14 of 2007 of the Laws of Zambia.

Particulars were that Mahtani between January 1, 2003 and December 31, 2009, jointly and while acting with unknown people, directly or indirectly engaged in a business transaction that involved the acquisition or retention of more than 25 per cent shares in Finance bank Zambia limited where by K81,700,253,230 was realised as dividends for the said illegal activities.

And the state prosecutors from the Drug Enforcement Commission (DEC) Moffat Chilonda and Maxwell Mukumana said they would call 15 witnesses.

Mahtani is being represented by Steven Malama, John Sangwa of Simeza Sangwa and Associates and Ronald Katongo.

The matter has been adjourned to September 30 for mention.

Dates set for trial were October 28 and 29.

[Times of Zambia]