Former Finance Bank chairperson Rajan Mahtani has been named as having been involved in indirect acquisition of shares into the bank through complex arrangements that violated the law.
This is according to Government Gazette notice just releasrd on the possession of Finance Bank Zambia Limited.
The central bank has said in Gazette Notice number 97 that it had reason to believe that the indirect acquisition of shares into the bank by Dr Mahtani through complex arrangements violated the provisions of the Banking and Financial Services Act (BSFA) (S.23(6) as neither the declared shareholders nor Dr Mahtani disclosed these obscure share arrangements to the Bank of Zambia (BoZ).
Giving the rationale for the termination of shareholder interests at Finance Bank, the Government Gazette Notice dated December 31, 2010 and signed by BoZ secretary Mathew Chisunka, said the purported holding of shares in Finance Bank by Finsbury, Clarkwell Limited and a Mr J A T Samuel was characterised by complex trust and transfer arrangements whose final consequence was that the beneficial shareholding in the bank was not that of the declared entities but converged on the chief executive officer and executive chairperson of Finsbury, Dr Mahtani.
The BoZ had reason to believe the acquisition by Credit Suisse of 40 per cent shareholding stake in Finance Bank appeared to be a lending transaction because of the underlying agreements that were not disclosed to BoZ.
Among other things, these agreements guaranteed a return to Credit Suisse on their investment.
As a result of these matters, Finance Bank and certain of its shareholders had violated several pertinent provisions of the BFSA and other regulations in a manner that constituted unsafe and unsound banking practices.
The central bank considers that the approvals given to certain shareholders to hold shares in Finance Bank were obtained by fraudulent misrepresentation and this necessitated the BoZ to withdraw its approvals on June 4, 2010 in respect of certain shareholders.
As a supervisory authority, it was imperative for the BoZ to assess the fitness and propriety of shareholders of all banks in order to among other things, safeguard the integrity of the financial system.
The BoZ is authorised by Section 81 to take possession of an erring financial services provider and once in its possession, it is vested with full and exclusive powers of management and control of the financial service provider including the power to terminate the interests of the shareholders at a value to be determined by the courts of law.
[ Times of Zambia ]
MMD has put Mahtani where they wanted him to be. Funny that my American boyfriend uses the same term before you know what I mean. Mulibakulu bonse.
Ya, FBL yalashupa iyo. Ka Rajan, just like all nsamya pa zed, is a ka crook. Just throw the ka bigger in Chimbwakaila and throw away the key mwe. After that, move into Madras and sweep it clean. Banyanya ba sh.i.tty Aba.
This “saga” couldnot have reached this stage if ba President Mwanawasa was around! But one wonders what has changed so dramatically that former Vice President Banda would want to finish off his former boss’s friend. Did President Banda really trust his boss?
Did our hard working Zambia Intelligence involved in giving sakalayongo Sakwiba Sikota the CCTV camera in implicating his professional friend turned enemy Sangwa.
This am sure has put former President Chiluba in an an awkward situation. Sangwa is the saviour of ba Chiluba. Can Chiluba speak on behalf on Sangwa though he is not a friend of our committed brother Mahatani!!!!!!!
Banda Roops has been promised a landslide win in the 2011 election by his newly found friend, Chiluba. In return he (Roops) is suppose to get rid of all the people who persecuted Chiluba during Ba levis’ presidency.Dont forget about the acquital, its part of the agreement…. Rajan was a good friend of Ba Levi who looked after maureens’ loot from the MMCI. And for that he has to pay. Chiluba will finish all the friends of the late Levi. where is Shaka, Mpombo, chibombamilimo, Nabulambe, Rajan…just to mention a few.
This is my perspective, what is yours?
Ba LT iam in Zambia. Why are you showing the USA flag against my comment?
I’m loving all this drama going on in zed. Can’t wait to get back.
Lya pansaka, who is your ISP
BY the way Shakafuswa does not depend on politics for a living..even Rajan did not solely depend on Finance Bank…These guys can never be fixed and they are still solid, unlike the others who depend on POLITICS for survival
Do not forget that this saga is happening with MMD in government. It doesn’t matter whether it’s Chiluba, Mwanawasa or Rupiah Banda, there all MMD and are corrupt. We need to have them voted out pronto.
Bondix
you are my ISP