Friday, February 23, 2024

Former Barclays Boss Accused of Fabricating Conflict of Interest in Zambian Bank Takeover

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London, November 28, 2023 — The High Court in London heard explosive allegations against former Barclays boss Bob Diamond, claiming that he fabricated a conflict of interest to obstruct Zambian businessman Dr. Rajan Mahtani from benefiting from the sale of Finance Bank Zambia (FBZ).

Dr. Mahtani, who founded FBZ in 1986 and agreed to a takeover by Diamond’s Atlas Mara company, accuses the latter of breaching the terms of the acquisition agreement, leading to a lawsuit seeking up to $100 million (£80m) in damages.

In his testimony on Tuesday, Dr. Mahtani refuted claims of a conflict of interest linked to the appointment of Faber Capital as a fundraising agent for the sale of FBZ and its subsidiaries. He alleged that the conflict was a pretext for delaying Faber’s appointment, hindering the raising of funds to achieve an ‘earn out’ target by the deadline of December 31, 2016.

The alleged conflict arose as Faber Capital was also mandated to work for Crane Bank, a Ugandan bank that Atlas Mara was considering for purchase. Dr. Mahtani dismissed the conflict as a ‘fiasco,’ stating that none of the involved parties, including Faber Capital and Crane, saw any problem.

During cross-examination, Atlas Mara’s representative, Anna Boase KC, cited correspondence indicating the company’s cooperation until the identification of the conflict on August 5, 2016. Boase argued that Atlas Mara resumed working with Faber once the conflict was resolved on September 27, as Faber dropped its Ugandan client.

Dr. Mahtani countered that none of the parties involved agreed on the existence of a conflict during that period. He claimed that the conflict issue soured relations between Atlas Mara and Faber, pointing to an internal email from Faber on September 24, expressing frustration with Atlas Mara’s reluctance to work with them.

Despite the email, Faber continued to work with FBZ, emailing Dr. Mahtani on October 9, outlining conditions for becoming the official fundraising agent. Dr. Mahtani blamed Atlas Mara for preventing the funds from being raised, emphasizing that it was the company’s lack of cooperation.

The ongoing trial raises serious allegations against Bob Diamond, whose past controversies include a forced exit from Barclays in a 2012 interbank rate-fixing scandal. Barclays was fined a record £290 million for manipulating rates determining mortgage payments.

The trial continues, promising further revelations and insights into the intricate web surrounding the FBZ takeover.

Source: Nick Forbes
Central News, Press Room, Central Criminal Court

9 COMMENTS

  1. Bob is a f00Iish imperialist who has messed with the wrong zambian. Rajan is my good friend and mentor. The imperialist thought rajan was dull. I don’t even trust those imperialist courts but they are currently better than the nonsense in zambian courts under upnd

    Without PREJUDICE. The Criminal behaviour of the State of The Republic of Zambia is NOTHING but a STINKING failed state. Today you have an Attorney General who at WILL enter consent judgements with no regard to pending CRIMINAL matters before the learned Justices of our Country. CRY MOTHER ZAMBIA

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    • Lies again about your good friend
      as we were at the same school a quick call confirmed no friendship
      so must call you out again
      pity some believe in you poor soles

    • @Kaizar “Kanyenga-Nyoko” Zulu: We Tongas do not steal from anyone. We work hard, and feed Zambia for 60 years, with maize and meat. That is what we do. There is nothing wrong with being proud of being good and doing good. If you want to see a criminal, look in the mirror. If you want to see a heinous criminal, look at the ugly mug shot of Edgar “Johnathan Mutawire” Lungu, or dig up the rotten corpse of Michael Satan. These are the animals which found Zambia cleaned up by Mwanawassa and Magande, and immediately stole the US $3.8 billion that was in reserves, and then borrowed another US 31 billion and sole it. These criminals are the ones causing Zambians to suffer now as the country is made to repay what they stole.

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  2. Those are stories for advanced crooks, only shareholders like HH can understand.
    Give us stories about petty thieves like Kaizer, Ba Ester and Frank Tayali.
    (Chilufya Tayali need change his name now).

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  3. @Nostradamus: HH is a highly educated economist, and was the CEO of an international accounting firm. There are standards in called the GAAP (Generally Accepted Accounting Practises), which you people who steal would never survive. If HH stole a ngwee in the morning, he would be caught by lunch that same day. HH has never stolen a ngwee from anyone. All of his money is honestly earned, as MMD and PF realised after investigating him over and over. Generally speaking, we Tongas do not steal. Just accept the fact. Equally, accept the fact that Esther Lungu has a case to answer, for emanating from Chawama as a pauper and the wife of a thieving lawyer, and somehow becoming a millionaire…

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