Finance bank Zambia major shareholder, Rajani Mahtani and finance bank Zambia limited have been sued for fraudulently opening 2 bank accounts in the names of Flame promotions limited.
According to two statements of claim filed in the Lusaka high court by flame promotions and procurement limited, Dr. Mahtani utilized the said accounts in concealing his insider borrowing from finance bank.
Flame Promotions claim that the scheme to set up the two accounts amounts to breach of banking and finical services act cap 387 of the laws of Zambia.
The plaintiff further claims that finance bank has been negligent in not preventing Dr. Mahtani from fraudulently utilizing flames promotions and procurement limited’s name to operate a bank account for his own use.
They add that Mahtani is attempting to enrich himself by refusing to own up to being the beneficiary of the money drawn on the accounts in question as finance bank is attempting to claim the funds from flame promotions.
Flame promotions and procurement limited is asking the court to declare that the two accounts set up by finance bank and Dr. Mahtani as a breach of banking and financial services act.
The company further claims that finance bank is responsible for all payments drawn from the accounts using instruments purportedly signed by Zulfikar Patel a client of finance bank.
But Dr. Mahtani has instructed his lawyer John Sangwa to counterclaim 100 million dollars for defamation of character from frame promotions and procurement limited over it’s claims filed in court.
He has since denied the allegations saying they are construed and part of an orchestrated agenda of people, who have failed to honor their debts.
MUVITV
Be honest. Set standards in Zambia right.
And yet when ‘someone’ came into power, he said the previous MMD government sold the bank in fraudulent way! There’s a lot to learn from these guys…
does suing someone constitute defamation of character?
Mahtani just shut up and go to court
3 OUT OF 4 EX ADMINISTRATIONS ARRESTED MAHTANI
KK ARRESTED MAHTANI FOR TRYING TO SMUGGLE FOREIGN EXCHANGE OUT OF ZAMBIA IN A CORPSE IN A COFFIN BEING FLYED OUT OF ZAMBIA (IS THIS GUY HUMAN) MAHTANI WAS CONVICTED AND SERVED 40 DAYS IN PRISON. RECORDS ARE IN THE MINISTRY OF HOME AFFAIRS AND PRISONS OF ZAMBIA
CHILUBA ARRESTED MAHTANI FOR STAGING A COUP (CAPTAIN SOKO) AFTER THEY FELL OUT ON THE CARLINGTOM MAIZE SCANDAL. MAHTANI WAS JAILED FOR 30 DAYS. RECORDS ARE IN THE MINISTRY OF HOME AFFAIRS AND PRISONS OF ZAMBIA
Whatever mahtani!!!!!
Why was Criticles Mwansa removed as Commisioner of ZRA under RB?
He wrote a letter waiving property transfer tax on the $80 million Credit Suisse paid Mahtani for the purchase of 40% shares in FBZ. The tax amount is over $10 million. Criticles said he was in need and Mahtani is a friend. He confessed to receiving an envelope to DEC. Unfortunately, the last administration did not prosecute him. However, we ask the current administration who have pedged to fight and clean corruption to bring back the right of the Zambian people on tax being collected on such big deals. WE WANT THE TAX + PENALTIES + INTEREST and the Culprits to be arrested for tax evasion and corruption.
The file is in DEC – please fight for our rights and retrieve the file before Mahtani pays someone to get rid of it.
Mahtani will not go to court,he will just go to state house.
what an idiot!!!!!!
Mahtani is a disgrace to the banking profession. He is a disgrace to the entire banking profession.
Mahtani should not be allowed to own even a “piggy bank” let alone a real bank. I can see Finance Bank collapsing soon.
@BANKER
loooool he would swindle the piggy bank too. Ask the elders in Ndola and they will tell you Mahtani used to pinch from the till at his mother’s supermarket.
eyaye, sata what is your comment now. with your socalled suporters. the bank you highly suppoted and critised the past government. Sata will soon cause trouble in Zambia. i see problems coming. this man will cause war in zambia soon. coz some times i wonder the actions he takes. here we are now with this bank, its really embarrasing. let him send Dr. Kaunda to go and negotiate eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeh
matani is right, he has just been offered by H.E why condem what has been approved by what you voted for. dont just criticise. we shall see. RB was wrong here is sata. let him send kaunda and vp to go and negotiate as usuall
There should be a fully fledged Commission of Inquiry into Finance Bank Limited under Rajan Mahtani. I also wonder if Credit Suisse can stand up and say they have done a proper due dilligence on Finance Bank and Mahtani. The Zambian people deserve to know. Transparency demands that everything must be laid bare.
Bankers Association of Zambia must comment on these relevations. Mahtani is tarnishing the image of all bankers. And where is Transparency International Zambia in all this? Donor community do you approove? Law Association of Zambia, what about public interest litigation on behalf of the people?
Republican President Michael Sata has instructed Finance minister Alexander Chikwanda to with immediate effect return Finance Bank Zambia Limited to the rightful owners.
Finance bank had been sold to First Rand Bank of South Africa by the previous government for alleged breach of the Banking and Financial services Act
President Sata says after carrying out a research, he has noted that they are no proper documents for the sale of Finance bank.
The president was speaking at State house this morning during the swearing in ceremony of Amos Malupenga as new Information and Broadcasting services permanent secretary.
The Bank of Zambia, last year,
muyunda you are talking sence. were is Italian Bunga Bunga and what are the comments, here is your so called party
Pabwatooooooooo!!!!!
Now things will get wasted with donchi kudabwa,hey you people we have to stop making experiments with our nation next time we seriously scrutinise who we put in state house. It was not had to know king cobra was not the right king for plot 1.we should not be looking at tribe before voting but attributes and integrity. There was no intelligence report before finance was given full support by the Govt.
Well done on the maize and names of airports but this is not enough far from the campaign promises and this is not acceptable.
Why sue now? Where were you when the account was opened and so much money drawn out? These are chaps Raj has asked to pay back debts and now they are trying to avoid it. FBZ please go ahead go out full throttle and recover all debts that were given on soft terms. And Raj never again be ‘good’ to any chap going forward lend only on sound grounds
mwenye ni mwenye, be it Matani or Patel…
FBZ is a good bank, it started so well, the services are good, the employees are well skilled and professional, knows their job well , the problem are the shareholders , Dr. Mathani will crush finance bank and the innocent employees will suffer one day. We appreciate he started the bank but the man has lost direction in the banking sector, he has destroyed the good reputation of the bank. FBZ =BEST BANK IN ZAMBIA WITHOUT MATHANI.
BUSINESS AND POLITICS=UNBALANCED EQUATION. Politicians will finish Mathani one day.
Mahtani is at it again. Sata shouldn’t have given this bank back to him without establishing whether or not he broke any banking laws in Zambia. Granted that FBZ should not have been sold to First Rand, but at the same time it should not have been given to Mahtani. Sata should do the right thing and allow the case against Mahtani to proceed for the good of the nation.
Sata is synonymous with corruption not allergic to corruption .
why wasting tme with this stupidy indian every time…… why not to kick him back to his country, he just a corrupted person…
Zambia is his country he is brown zambian no one else will take him
Mahtani and group are the MAFIA, white collar criminals.Â
What happened to the banking rules FB broke? Are they going to be resurrected? Has BOZ closed the case?
Mahtani has been a resident of the prison service in zambia under every administration. There must be some reason he is jailed every 5-10 years.This man seems to enjoy the food and the solitude which a prison offers. There is a lot of time to examine one’s well lived life there. Give him time the Sata administration will also see it in their interest to send him back to chimbokaile
Sata will definately go down with this Indian.He set up a commition of enquiry to investigate into the Sale of Finance Bank but before it could start sitting, he made a decision to give it back to the owner.This issue should have been handled by the Bank of Zambia and not by the President,but because our President was allergic to corruption and could not wait to consult he made a blander.This Mahtani man is corrupt and only a corrupt person can support him.If he is being supported by the President,then it raises a lot of questions on the Integrity of the President.
The best feasible financial road-map is to advise all my dear relatives and friends to immediately close their accounts in this fragile Bank on the steep slope destined for a big crash. Meridean Bank, which was killed by the Chiluba regime, operated under honest management team compared to crooks that preside over the operations of Finance Bank. Besides, ZANACO employees are much more secure than those who work for Finance Bank. May God save Zambians from total ruins.
I have adviced my wife to close her account at Finance Bank Zambia Limited. It is better to be safe than sorry. Merridian Bank collapse taught me a big lesson.
Both Sata and RB are corrupt, but RB is worse than SYCO MATTA. Dont trust these fools least you die with depretion.
You guys if you have no idea how a bank is run leave the issue of FBZ alone. FBZ is a strong bank, no doubt. Its ‘bleaches’ could have been sorted out not through a GRZ repossession. Why are ignoring the fact that FBZ is owed a lot of money by people/institutions who are capable of paying but wanted to escape this by bringing the bank down? FBZ don’t spare any borrower let them pay back their loans and the bank will be strong
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