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(ZAMBIA WATCHDOG) How State House ´fixed´ Rajan Mahtani

How State House ´fixed´ Rajan Mahtani
* Thursday, March 17, 2011, 13:15
* Opinion Editorials

In or about October of 2009 a Mr. Kelvin Sampa held a press conference at the Intercontinental Hotel in Lusaka at which he made numerous allegations about Dr.Rajan Mahtani and the Companies in which he is involved. Immediately after the said press conference, Mr. Sampa, using the ‘Watchdog’ internet service, published a 13 page Article which was totally defamatory, malicious, libelous and scandalous.

An appropriate complaint was lodged with the Police and Dr. Mahtani’s Advocates applied for an injunction against the said article which injunction was refused. Mr. Kelvin Sampa boasted that his authority emanated from the political front and that no actions taken out by Dr. Mahtani would ever succeed.

Some of the alleged initiators of the said article was Mr. Antonio Ventriglia and Mrs. Manuela Sebastiani Ventriglia (the Ventriglias), Directors in Zambezi Portland Cement Limited (ZPC) who engaged Mr. Kelvin Sampa (presently also their Public Relations Manager). It is believed that Mr. Sampa used his political connections to allow the Ventriglias meet a number of Politicians and Government Officials in order to fabricate allegations on what is a commercial transaction and subjudice.

The other known instigator is a Mr. Odysseas Mandenakis from a company called Hotellier Limited, whose main contractor is a Mr. Mohamed Salama of Flame Promotions and Procurements Limited (second and third instigators). Mr. Salama engaged Mr. James Banda, the President’s Brother, around July 2009 on a ‘retainer’ to obtain political advantage. Mr. Salama also induced a number of politicians with construction and renovations favours.

Hon. Sakwiba Sikota, S.C. used his political platform for a meeting with the instigators and other Government Officials at State House. Allegations fabricated at that meeting caused complaints to be lodged with the Drug Enforcement Commission (D.E.C.) and Hon. Sakwiba Sikota, S.C. was unethically appointed an agent for the DEC and the Bank of Zambia.

The ‘Watchdog’ informed the public at large and alleged that Dr. Mahtani had fled the Country and further alleged that there was an international warrant for his arrest. In view of Dr. Mahtani’s fiduciary responsibility he stepped down as Chairman of the Board of Finance Bank Zambia Limited on 19th February, 2010 to enable him defend his dignity and integrity.

All instigators are represented by Hon. Sakwiba Sikota, S.C. On or about 18th February, 2010 Mr. Odysseas Mandenakis requested Mr. Dick King, then Managing Director of Finance Bank to attend an urgent meeting at his home at approximately 18.00 hours. At that meeting Hon. Sakwiba Sikota, S.C. was present and presented Mr. King with a letter addressed to Dr. Mahtani’s Advocate Mr. Michael Mundashi, S.C. of Mulenga Mundashi & Co., making numerous allegations and claims. Mr. Salama then appeared at this meeting and put his revolver on the table, claiming that his briefcase contained tapes and recording equipment. A frightened Mr. King requested for time to study the contents of the unsigned letter. At approximately 20.00 hours the next evening (19th February 2010) His Excellency the President phoned Mr. King informing him of his knowledge of the meeting and requested for an urgent audience with Credit-Suisse, and advised Mr. King not to divulge any information to Dr. Mahtani. Hon. Sakwiba Sikota, S.C. readdressed the letter (handed over to Mr. King) to Credit-Suisse which letter also was unsigned and marked ‘Without Prejudice’.

Copies of the said letter were given to the Attorney-General, Minister of Finance, Special Assistant to the President (Economy) Dr. Richard Chembe and Special Assistant to the President (Press) Mr. Dickson Jere and e-mailed to Mr. King.

A meeting was convened in Dubai whilst His Excellency the President was in transit to China on Tuesday, 23rd February, 2010 and attended by His Excellency the President, the Attorney-General, The Honourable Minister of Finance, Dr. Richard Chembe, Mr. Dickson Jere, Mr. Dick King and Credit-Suisse Officials.

In the third week of March, 2010, Mr. Dick King was invited to State House at a meeting chaired by His Excellency the President and attended by the Attorney-General, Dr. Richard Chembe, Special Assistant (Economy), Mr. Dickson Jere, Special Assistant (Press) and Hon. Sakwiba Sikota, S.C. Mr. King was directed to provide Hon. Sikota, S.C. with any information he required. By this time Bank of Zambia entered into a Memorandum of Understanding with the DEC and other agencies of Government in relation to all or any matters related to Dr. Mahtani and his Companies.

Dr. Mahtani voluntarily returned to Zambia on Wednesday 24th March, 2010 and held a very short press conference on that day. He asserted his confidence in His Excellency the President and advised that all allegations were really of commercial natures and that he (Dr. Mahtani) was confident that he would be vindicated by the Rule of Law.

In May, 2010, a South African firm ENS Forensics (Pty) Limited, part of Edward Nathan Sonnenbergs was appointed by the Attorney-General, Bank of Zambia and DEC to investigate any criminal activity on the part of Dr. Mahtani. In June 2010 Deloittes London was engaged by the Bank of Zambia at a cost in excess of One Million five hundred thousand pounds sterling to audit Finance Bank Zambia Limited.

All Executives of Companies associated to Dr. Mahtani have been interrogated under harrassment by the DEC. Dr. Mahtani was interrogated on the 4th of June, 2010 when his passport was seized purportedly under Section 15 of the Prohibition and Prevention of Money Laundering Act of 2001.

On the 4th of August, 2010 Dr. Mahtani was arrested and charged with the offences of:

1.

Having control of more than twenty-five percentum (25%) votes cast in Finance Bank Zambia Limited without prior approval of Bank of Zambia contrary to Section 23(2)(b)(4) as read with Section (6) of the Banking and Financial Services Act Cap 387 of the Laws of Zambia; and

1.

Money Laundering contrary to Section 7 of the Prohibition and Prevention of the Money Laundering Act 14 of 2001 involving dividends paid into Finsbury Investments Limited’s Bank Accounts.

The Chairman of Finance Bank Zambia Limited from the first week of March 2010 was Dr. Jacob Mwanza and the previous Board of Directors resigned then. Bank of Zambia only approved the new Board of Directors in November 2010 leaving the affairs of the Bank under the Chairman and the Managing Director Mr Dick King.

It is apparent that Bank of Zambia moved from its regulatory role to a ‘politically motivated role’ since the three instigators were protected politically from settling their debts with the Bank on the assurance that if the Bank goes under they would be saved from settling legally binding debts and could share the ‘spoils’ with them. It is alleged that old ‘scores’ by former President F.J.T. Chiluba with consent from the present administration masterminded his vengeance with this well orchestrated scheme.

Three subsequent charges were made on Dr. Mahtani covering:-

1.

A fraud and forgery charge on 1st Ocotber, 2010, jointly with one of his lawyers Mr John Sangwa over a letter purported to have been written by the Bank of Zambia on 12th July 2010 and which Mr Sangwa sent under a covering letter to Bank of Zambia on 27th July 2010 enquiring the Bank of Zambia’s position on this document which allegedly directed the investigation authorities to convict Dr. Mahtani and his associates even under ‘ghost charges’.

1.

On 13th October 2010 Dr. Mahtani was charged with Mr. Mr. Peter Kanaganayagam one of the Directors of Cladava Mining Limited for “obtaining credit facilities under false pretences. The only other Director of Cladava Mining Limited is Ms Maria De Rosa (now a wife of Daniel Ventriglia) who, for reasons best known to the authorities, has not been charged for any offence. Dr. Mahtani is neither a shareholder nor a Director of Cladava Mining Limited.

1.

On 26th January 2011 Dr. Mahtani was charged with Mrs Parvathi Nachimuthu and Ms Mutale Chisha for ‘forgery’.

The Media has inferred in the many reports that matters pertaining to Dr. Mahtani, a Zambian Citizen in business for over forty years but as a family covering over one hundred years, that the plan is well ‘orchestrated’ to satisfy the evil desires of the politicians and their accomplices. This is a manifestation of ‘pull him down’ a ‘PHD’ of many Zambians envious of success.

Bank of Zambia initially portrayed that Finance Bank was ‘insolvent’ in an endeavour to create ‘panic’ in the market and to justify their role. Instead of assisting Dr. Jacob Mwanza to ensure the loans of the ‘instigators’ were paid back BOZ with Government machinery prevented such repayments. Despite this manoeuvre, they have finally conceded that Finance Bank is solvent. They now suggest that there may be an ‘adequacy ratio’ deficiency! Who has created this from the time Dr. Mahtani stepped down as Chairman? Is this not a successful plan on the part of Bank of Zambia and the State machinery to take away a successful Bank with over a thousand employees from the ‘founder’ and his co-shareholders? Is this a form of Nationalization to settle scores?

What scores?

1.

An untrue allegation that Finance Bank lent money to the Post!
2.

An untrue allegation that Dr. Mahtani financially supported the opposition PF?
3.

An untrue allegation that Dr. Mahtani, when Chairman of Finance Bank took one of the properties of the President under collateral of the borrowing by the President’s company?
4.

An untrue allegation that the friendship with the Mwanawasa family is a threat to the MMD?
5.

The fate of over 1000 employees and their extended families just to punish one innocent Zambian?
6.

Is this Government’s philosophy of how to deal with Zambian investors whilst wooing for foreign investors? Why does Government get involved with Zambian private institutions?

The truth will finally prevail in all these situations but at what cost and damage? In whose hands is vengeance when you cannot rely on your Government and its machinery to protect its citizens and their human rights? Posterity will prove the ‘metal’ of our leaders and their honesty.

CREDIT SUISSE SENDS HIGH POWERED DELEGATION TO ZAMBIA TO CLAIM ITS 40% SHAREHOLDING IN FINANCE BANK ZAMBIA LIMITED.

Credit Suisse delegation consisting of Mr. Christopher Colson and Mr. Markus Niemeier arrived in Zambia on Tuesday 8th March, 2011 to make representations at the Bank of Zambia ‘hearing’ at Mulungushi Conference Centre claiming the ownership of 40% (forty) of the equity of Finance Bank Zambia Limited. Their lawyers in London D.L. Piper have appointed Chibesakunda & Co., to represent them.

They also met Bank of Zambia on Thursday at 9.30hrs and are delighted to hear that Finance Bank Zambia Limited is ‘solvent’ and any deficit in adequacy capital is not beyond the means of Credit Suisse.

Credit Suisse is a Swiss International Bank represented throughout the World but their first interest in Africa was in Finance Bank Zambia Limited.

Editor´s Note: The Watchdog takes the assertion made inhere regarding the Watchdog as opinions of the author as the Watchdog has never had any dealing with the people mentioned above. We only publisheed the news we gathered.

Labels: FINANCE BANK, MMD, RAJAN MAHTANI

posted by MrK @ 3:25 PM