Maravi

Rupiah instructed Oddysseas to complain about Mahtani - Sangwa

Rupiah instructed Oddysseas to complain about Mahtani - Sangwa
By Maluba Jere
Mon 18 July 2011, 11:20 CAT

LUSAKA lawyer John Sangwa has testified that Odys Works managing director Oddysseas Mandenakis told him that President Rupiah Banda instructed him to complain to the Drug Enforcement Commission over problems he was having with Dr Rajan Mahtani.

Opening his defence before deputy director for subordinate courts Charles Kafunda who sat as magistrate in a case where he and Dr Mahtani are facing five counts ranging from forgery, uttering a false document and fabricating evidence, Sangwa testified that Mandenakis told him that he met President Banda with the help of his lawyer Sakwiba Sikota.

Sangwa said Mandenakis told him that at that meeting, he explained to President Banda the problems he had with Dr Mahtani regarding the completion of a hotel project Radisson Blue near the Arcades roundabout in Lusaka.

“Mr Mandenakis confirmed to me that on the instruction of the President, he went and made a complaint to the Drug Enforcement Commission,” Sangwa said.

“With this background in mind, I told Mr Mandenakis that it was impossible for him and Dr Mahtani to work together in that trust between them had been eroded and I explained to him that the way forward in resolving the impasse was for either Dr Mahtani or himself to exit from hotelier.”

He also said after giving him that advice, Mandenakis informed him that there had been earlier attempts to resolve the matters but that the discussions had collapsed.

Sangwa said his advice to Mandenakis was that it was in his interest to find a solution to the problem in that his company had already borrowed heavily from financial institutions and that interest was still accruing.

He said Mandenakis said he was not in a position to buy out Finsbury Investments and that the only option was for Finsbury to buy out Oddys Works.

Sangwa said when Mandenakis learnt that he Sangwa was Dr Mahtani's lawyer, he asked if he could intervene in their problem, adding that it was clear that Mandenakis wanted an exit from hotelier deal provided there was an improved offer from Dr Mahtani.

He told the court that after several meetings about the project, Mandenakis was offered US $2.5 million from the initial offer of US$2 million, although Mandenakis was demanding US $3.5 million.

Sangwa said Mandenakis told him he would arrange for a meeting which was to be attended by himself, Mohammed Salama and Sikota.

He said at that meeting of July 25, 2010, Salama asked what offer Sangwa had from Dr Mahtani and that he Sangwa said he had none, adding that the objective of the meeting was to explore whether or not they were willing to settle the differences amicably.

Sangwa said at the meeting, Salama turned out to be vulgar and abusive in his language. He testified that he was shocked to learn during trial in this case that the meeting of July 26, 2010 was recorded.

“I was doing my job as a lawyer and I can't think of any reason why anybody would record such a meeting and in a clandestine manner,” Sangwa said. “It can only be with a view of entrapment.

There was no indication that there was a recording. I have known Mr Mandenakis for 20 years and my involvement with Dr Mahtani was at his instance. It was therefore shocking for me to learn that the meeting was recorded and that is why I had no problem having it played before this court.”

Earlier, Sangwa testified that he was alarmed when he received a letter dated July 12, 2010 purported to have been written by Dr Denny Kalylaya from Bank of Zambia (BoZ).

He said he was alarmed by the contents of the letter because it was talking about taking over shares in Finance Bank and that it also made reference to Sikota, Dr Mahtani, Mandenakis and Mohammed Salama.

“I was also alarmed in that the letter made reference to instructions from the President. The mere mention of the name of the President is not something to be taken lightly,” he said.

Sangwa further testified that in that letter, there was also mention of Zambezi Portland Cement and Credit Suisse, among other issues.

He said in the course of his dealings, he had an occasion to meet with officers of Credit Suisse in London who confirmed that they had been interviewed by officers from BoZ in relation to their interest in Finance Bank Zambia (FBZ).

Sangwa told magistrate Kafunda that officers from Credit Suisse also told him that they had discussions with the president in Dubai over their interest in FBZ. He said he then decided to write to the BoZ governor in his effort to protect his client's interests and attached the July 12, 2010 letter as well.

Sangwa said he copied the letter to all the interested parties for information purposes so that in an event of possible litigation, they would have known the basis for such litigation.

He said he finally had a meeting with BoZ governor where the contents of the letter were discussed.

Sangwa added that on July 29, 2010, he wrote thanking the BoZ governor for seeing him at such short notice and also noted the positive environment that characterised the meeting.

He said the governor responded to both his letters and that in relation to the first letter in which he sought the bank's confirmation, the bank responded that the July 12, 2010 letter was a forgery and that it did not emanate from BoZ.
Defence continues

Labels: COURTS, JOHN SANGWA, RAJAN MAHTANI, RUPIAH BANDA

posted by MrK @ 4:06 PM