Money Laundering

Finsbury Investment Claims Unethical Manipulation Of Shares, Reaches Lusaka High Court

Dr. Rajan Lekhraj Mahtani is a noted businessman in Zambia with numerous successful businesses such as Mahtani Group of Companies, Finsbury Investments and Finance Bank Zambia. Dr. Rajan Mahtani has made a reputation of himself with his authentic and transparent business practices. Recently, Dr. Rajan Mahtani owned Finsbury Investments sued the ESATDB (Eastern & Southern African Trade and Development Bank). The compliant was registered at the Lusaka High Court and it was claimed that Finsbury Investments was wrongly removed as a major shareholder at the Hotellier Limited. This has resulted in significant financial and reputational damage and Finsbury Investments have demanded justice for this unethical conspiracy against the firm.

In the principle registration, Finsbury Investments filed that the ESATDB allowed Ody’S or OWL (Ody’s Works Limited) to alter share capital associated with Hotellier. Ody’s then issued new shares which were contrary to the shared pledged to the Finsbury Investments and officially written under the company’s name. Further statement from the defendant indicated that in the year 2012, the bank in a unilateral manner, issued an official letter which guaranteed that the shares from the company had been properly discharged. However, this letter was released without establishing any application process and without intimating the plaintiff. Therefore, it can be said that the letter was issued with the objective of aiding Ody’s opposition of the compliant raised by Finsbury Investments.

Finsbury Investments further stated that due to the wrongful dilution of the shareholding pattern, the company suffered huge financial and reputational loss. As a result of this unethical takeover of the shareholding of the Radisson Blue Hotel, Finsbury Investments suffered numerous loss not only in current scenario but risks to the future of the company. The dividends lost due to this unethical practice were close to USD 30 million, a loss of which halted significant projects for Finsbury Investments. As such, Finsbury Investments has launched an official complaint against this issue with the expectations of quick judgement.