
Finance bank board Chairperson Dr. Rajani Mahtani has been freed from criminal prosecution of money laundering involving the illegal acquisition of 25 percent shares in finance bank limited.
Director of Public Prosecution-DPP-Mutembo Nchito instructed the magistrate court presided by Lusaka chief resident magistrate, Joshua Banda to discharge Dr. Mahtani.
This was after Drug Enforcement Commission Principal state advocate Gracilia Mulenga, who made the formal application informing the court that the DPP had instructed for the discontinuation of the case.
In this case Dr. Mahtani was facing charges of illegally acquiring more than 25 percent shares in finance bank and another count of money laundering involving K81.7 billion.
In the first count, the allegation was that between January 1, 2003 and December 31, 2009, Dr Mahtani acquired beneficial interest in voting shares of FBZ to enable him to control more than 25 percent of the total votes that could be cast on any general resolution at a general or special meeting of the bank.
It was alleged that Dr Mahtani did so without prior approval of the Bank of Zambia in writing, contrary to section 23(1), (2) (a) and (6) of the Banking and Financial Services Act number 21 of 1994 of the Laws of Zambia.
In the other count, the allegation was that between January 1, 2003 and December 31, 2009, Dr Mahtani, jointly and whilst acting together with other unknown persons, engaged directly or indirectly in a business transaction that involved the acquisition or retention of more than 25 percent shares in FBZ, whereby K81.7 billion was realised as dividends from the said illegal acquisition.
He was charged under section 7 of the Prohibition and Prevention of Money Laundering Act number 14 of 2001 of the Laws of Zambia.
[pullquote]“I am a born-again Christian and I believe in Christian principles. Vengeance is not mine, it is the Lord’s…I have forgiven them but I need to make sure that my international reputation, which was at stake, is cleared,” Dr Mahtani said.[/pullquote]
The charges and other numerous allegations triggered the seizure and subsequent sale of FBZ by the Central Bank to First Rand National Bank of South Africa.
The discontinuation does not come as a surprise following Government’s reversal of the sale of Finance Bank to FNB of South Africa last year.
The reversal was done three days after President Sata had constituted a commission of inquiry to investigate the sale of the Bank by the previous regime.
And commenting on the discontinuation of court proceedings against him, Dr Mahtani said he is relieved in that justice has been done.
He said he has no ill feelings against all the people who made false allegations against him and that he has forgiven everyone involved.
“I am a born-again Christian and I believe in Christian principles. Vengeance is not mine, it is the Lord’s…I have forgiven them but I need to make sure that my international reputation, which was at stake, is cleared,” Dr Mahtani said.
He cautioned people to avoid the culture of making false allegations against their perceived enemies. “They must realise that there is the rule of law and justice must prevail,” he said.
[MUVITV/ Zambia Daily Mail]