FINANCE Bank Zambia (FBZ) Limited chairperson, Rajan Mahtani, has alleged that the former regime under president Rupiah Banda, externalised over K50 billion to the United Kingdom and South Africa at the time the bank was under seizure.
Mr Mahtani claimed that a total of K52 billion was externalised through the Bank of Zambia (BoZ) to named UK and South African-based companies.
He made the allegations at a media briefing in Lusaka yesterday, saying the previous regime separately externalised K17 billion to a London-based company and US$7 million (about K35 billion) to South Africa.
Mr Mahtani alleged that the K17 billion was transmitted to a company in London that was contracted to audit the bank shortly after it was repossessed while a named forensics company from South Africa was specifically contracted to investigate Dr Mahtani and was paid an equivalent of K35 billion ($7 million).
The FBZ chairperson said steps had been taken to ensure that the bank recovered the money because the fees were unjustifiably too high.
Mr Mahtani said what was even more worrying was that the audit was undertaken after the bank obtained a court order to restrain the company from going ahead.
Dr Mahtani also said the decision by the previous government to repossess and sell the bank was ill-conceived and was done to punish him because of the long-standing differences the bank had with a former government official before he joined the government.
He alleged that the official borrowed a substantial amount of money from the bank to purchase a house and never paid back until the board decided to grab a house situated in Lusaka’s Kabulonga area.
On the audit, Dr Mahtani said there had been no firm which had ever charged K17 billion for such services and wondered why the BoZ did not engage a local international audit firm.
He said as board chairperson, he was not involved in the whole transaction about the Kabulonga house and there was nothing legally wrong with the decision by the FBZ.
Dr Mahtani claimed that the sale of the bank to First National Bank at K27 billion was purely a political decision and that within the few months it operated under its original shareholders, the bank had made K60 billion profit.
According to Dr Mahtani, FBZ made minor mistakes because the officials were human beings but such did not warrant the closure of a viable business.?
He said FBZ shareholders, Credit Suisse have resolved to fund the 500 million Euro bonds the Government intended to float and hoped to act as an agent to resell the bonds as a way of showing appreciation to the Zambian Government which had reversed the transaction.
Dr Mahtani also said FBZ planned to commence the process of listing on the Lusaka, London and Johannesburg stock exchanges and that 40 per cent shares would be off-loaded by 2014.
He said he faced hardships to seek medical treatment when he was operated on at Milpark Clinic in South Africa while officials from the Drug-Enforcement Commission (DEC) followed him without good reasons.
Dr Mahtani said the bank was expected to pay K20 billion in taxes by the end of the year while the number of workers would rise to around 1,000 before the end of next year.
Meanwhile, FBZ has, with immediate effect, increased salaries for its 734 workers by K2 million across the board with the lowest paid getting at least K4.5 million per month.
[Times of Zambia]
This is nonsense
I know black men can not be trusted with money, but this is getting into a comedy
Never trust a black man with money
I wonder what credibility though this Mahtani has, either way, there is farce in zambia
Its laughable
Thanks
You are a whore Mushota.
mushota please dont just be a crazy racist you black lady.your husband should not trust you with money as you are black too.
Well done Mr President for giving back the bank to it’s rightful owners. This is how foreign companies externalise our cash
Indeed i could never buy shares in a company with a chairman with his heart in his LEG.
ya ba Ok am cracking up ati his heart is in his leg ha hahhahahahahahahahha!!!Dude needed by pass surgery after Rupiah gave him a Boma ni Boma Head Nigger in Charge whipping!Now hommie is back!!But that picure needs a caption!!
ya ba Ok am cracking up ati his heart is in his leg ha hahhahahahahahahahha!!!Dude needed by pass surgery after Rupiah gave him a Boma ni Boma Head Nigger in Charge whipping!Now hommie is back!!But that picure needs a caption!!
ya ba Ok am cracking up ati his heart is in his leg ha hahhahahahahahahahha!!!Dude needed by pass surgery after Rupiah gave him a Boma ni Boma Head Nigger in Charge whipping!Now hommie is back!!But that picure needs a caption!!
ya ba Ok am cracking up ati his heart is in his leg ha hahhahahahahahahahha!!!Dude needed by pass surgery after Rupiah gave him a Boma ni Boma Head Nigger in Charge whipping!Now hommie is back!!But that picure needs a caption!!
ya ba Ok am cracking up ati his heart is in his leg ha hahhahahahahahahahha!!!Dude needed by pass surgery after Rupiah gave him a Boma ni Boma Head Nigger in Charge whipping!Now hommie is back!!But that picure needs a caption!!
Mushota, it is his Bank, whether he is credible or not (me thinks he is), no one has the right to grab the bank from him and FREElY give it to the South Africans and FREE HIS DEFAULTERS from paying back
Zambians stand up for your rights. When you see a wrong being committed, don’t sit iddle or look the other way. Blow the whistle. You know what I mean!!!!!!!!!!!!
It takes a thief to catch a thief or It takes one to know one. This is a joke of a bank. Why not name the official who had the beef. Nonsense !!
It is clear that the official is RB himself, his house was grabbed for failure to pay back. He put it as collateral.
Mr Indian please stick to business update.. Dont show us your nasty small leg. Only UTH is interested in you anatomy.
Ba negro, what is the problem?
@panafricanist; you cheap racist! and not pan africanist at all.
Liars flock together and when they are at the top it spells trouble. Isn’t this guy supposed to be appearing in court or was he freed by decree like Judge Ngoma?
The Bank that was sold for K27 billion will by this monthend make a profit of K60 billion and put K20 billion into the pockets of Zambians. It will also increase the pockets of 700 employees by K2 million every month. Wooooooooooowwwwwwwwwww!!!!!!!!!!!!!!!!!!!!!!!!!
A troll is someone who posts messages in an online community with the primary intent of provoking readers into an emotional response. LT bloggers, Mushota is a TROLL and as such DNFTT (Do Not Feed The Trolls)
Billions are the new millions…Billion this, billions that, billions here and billions under this.
Mahtani is a crook and good luck to those that will buy shares in his crooked bank. I even wonder if there is even any sane Zambian who has money in his bank, apart from Unza students and Government. This is a crooks bank and stay away from it if you value your hard earned money
On a serious note, Zambia has money!
Don’t trust Mushota with money, especially that she or he is also Bemba in addtion to being black. Double risk
Mushota is bemba…?!!
Mathani’s heart is in his leg…lol, anyway the lesser of the two evils won here because Rajan is the rightful owner of the bank while RB was using personal vendettas and selfish motives to screw the Indian guy. Lesa wamulinganya elo ni malyotola, there is more to be revealed about RB’s shenanigans…
this time around ..you should follow the right procedures to lend and borrow!
If its not banks, then its airlines. Whats with Zed politic and these institutes???? The stink is just overwhelming!!!!
He said FBZ shareholders, Credit Suisse have resolved to fund the 500 million Euro bonds the Government intended to float and hoped to act as an agent to resell the bonds as a way of showing appreciation to the Zambian Government which had reversed the transaction.
What does he mean?
Now this bank is charitable, eh?
Mr. Mahtani, please learn that when you are saved you have to learn your lessons. Your problem is that you like publicly gesturing your allegences to politicians and that’s what brought you in trouble in the first place.
That said, please do not make statements without evidence. At least speak with documents in your hands!
And what makes you jump to the conclusion that he doesn’t? I don’t think somebody like him and all his lawyers would be so stupid as you are suggesting, sir.
People ignore Nick (through Mushota) I hear even their relatives have rejected them both in Zambia and Europe because they are very dull and foolish people, especially Nick who authors most of the foolish comments posted on LT.
PF gives back the bank and Mahtani wants money on top. So the Zambian people will pay the bill. What a bloody crook this Indian is?
#16.uwkwisano. Before you show your ignorance else where . In heart surgery nerves are taken from less stressful part of the body and inserted near the hear to enable blood flow !
Mbuzi says:
Wed Dec 07 at 10:58 am
#16.uwkwisano. Before you show your ignorance else where . In heart surgery nerves are taken from less stressful part of the body and inserted near the heart to enable blood flow !
Reply
They paid for services which Mahtani thinks were too expensive, so where is the scandal here?
This typical of a crying baby.
since the so called foreign companies are known, why dont you do a forensic audit yourself since its your bank involved. or is it goverment money they stole?
GIVE A THOT TO YOUR COMMENTS BEFORE YOU LET THE WHOLE WORLD KNOW ABOUT THEM.RUPHIA WAS THE GUYS WHO DEFAULTED ON THE HOUSE PAYMENTS.RAJAN WAS THE FOUNDER OF THE BANK AND IT DIDNT BELONG TO THE GOVERNEMNET FOR THE GRZ TO SALE IT.U HAVE ALL SEEN WHAT HAS HAPPENED TO THE COMPANIES SOLD BY GRZ.WHERE ARE THE EMPLOYEESS WHOSE JOBS WHERE GURANTEED B4 THE SALE?WHOULD YOU BE HAPPY TO HAVE FNB RUNING FBZ AND EXTENALISING THE PROFITS?WHERE DOES YOUR ALLEGIENCE LIE?TO ZAMBIA AND HER PEOPLE OR FOREIGN LANDS?GIVING THE BAK BACK TO RAJAN IS A LESSER EVIL AND ACCEPTABLE.
It is insulting for an Indian who almost lost Zambians money to question decisions of a govt that was acting on behalf of the people. PF must be ver careful the way they are going about things. Is this going to be the only reason they were voted into power???? Wait. It is becoming boring that a government that is buys witch-hunting is itself giving out questionable contracts. Up to now Sata has not offered a credible explanation why he contracted a Minister’s company to renovate State House. It is very insulting to the rest of us for a president to say that he has no idea about the company renovating a State building in which he will be operating. As for Mathani, his days are numbered. I think his heart-attack didn’t scare him enough… He will regret insulting Zambians soon!
Mathani has not insulted Zambians, and MMD never acted on behalf of Zambians. They were selfish SoBs.
You must be an *****.
Its birds of the same feathers flock together. Another hullabaloo public exciting ranting to please the chief benefactor. Dr Mahtani says FBZ only committed minor mistakes (name the mistakes?), all FBZ employees salaries increased by K2 million (why now? where has money come from?) MMD externalised K52 billion is misleading, why not audit costs and evaluations costs of the bank amounted to K52 billion. To some extend Mahtani caused this expenditure because secretive methods Mahtani has been known in business dealings. remember Callingnton Deal when he cut out a deal to undercut Chiluba and he paid heavily. Dr Mahtani’s Finance Bank was banned and closed off in Malawi because of money laundering (minor mistakes). Truth will eventually come out, Mahtani will again pay heavily.
Its birds of the same feathers flock together. Another hullabaloo public exciting ranting to please the chief benefactor. Dr Mahtani says FBZ only committed minor mistakes (name the mistakes?), all FBZ employees salaries increased by K2 million (why now? where has money come from?) MMD externalised K52 billion is misleading, why not audit costs and evaluations costs of the bank amounted to K52 billion. To some extend Mahtani caused this expenditure because secretive methods Mahtani has been known in business dealings. remember Callingnton Deal when he cut out a deal to undercut Chiluba and he paid heavily. Dr Mahtani’s Finance Bank was banned and closed off in Malawi because of money laundering (minor mistakes). Truth will eventually come out, Mahtani will again pay heavily.
Its birds of the same feathers flock together. Another hullabaloo public exciting ranting to please the chief benefactor. Dr Mahtani says FBZ only committed minor mistakes (name the mistakes?), all FBZ employees salaries increased by K2 million (why now? where has money come from?) MMD externalised K52 billion is misleading, why not audit costs and evaluations costs of the bank amounted to K52 billion. To some extend Mahtani caused this expenditure because secretive methods Mahtani has been known in business dealings. remember Callingnton Deal when he cut out a deal to undercut Chiluba and he paid heavily. Dr Mahtani’s Finance Bank was banned and closed off in Malawi because of money laundering (minor mistakes). Truth will eventually come out, Mahtani will again pay heavily.
Its birds of the same feathers flock together. Another hullabaloo public exciting ranting to please the chief benefactor. Dr Mahtani says FBZ only committed minor mistakes (name the mistakes?), all FBZ employees salaries increased by K2 million (why now? where has money come from?) MMD externalised K52 billion is misleading, why not audit costs and evaluations costs of the bank amounted to K52 billion. To some extend Mahtani caused this expenditure because secretive methods Mahtani has been known in business dealings. remember Callingnton Deal when he cut out a deal to undercut Chiluba and he paid heavily. Dr Mahtani’s Finance Bank was banned and closed off in Malawi because of money laundering (minor mistakes). Truth will eventually come out, Mahtani will again pay heavily.
Its birds of the same feathers flock together. Another hullabaloo public exciting ranting to please the chief benefactor. Dr Mahtani says FBZ only committed minor mistakes (name the mistakes?), all FBZ employees salaries increased by K2 million (why now? where has money come from?) MMD externalised K52 billion is misleading, why not audit costs and evaluations costs of the bank amounted to K52 billion. To some extend Mahtani caused this expenditure because secretive methods Mahtani has been known in business dealings. remember Callingnton Deal when he cut out a deal to undercut Chiluba and he paid heavily. Dr Mahtani’s Finance Bank was banned and closed off in Malawi because of money laundering (minor mistakes). Truth will eventually come out, Mahtani will again pay heavily.
We are interested with the fellow who borrowed the money and later failed to pay the loan, Is it RB?Tell us don’t start to play a confidencial guy.
We are interested with the fellow who borrowed the money and later failed to pay the loan, Is it RB?Tell us don’t start to play a confidencial guy.=:)
What else can this mwenye tell us now,give us details of this externalisation of funds.Moreover,since the bank was saved,you have the right to pay back PF for the generosity.Otherwise,this bubbling will end customer confidence for the bank.Why should the bank be in public domain,it means its a bank for crooks and used by crooks.
Those of you that are doubting RB’s incapability of such vengeance against Mahtani who repossessed his house need only look at the way he treated VJ. Can any body explain why VJ was replaced as Campaign Manager by the lacklustre Dr. Kawimbe. Apparently during the UNIP era Mwaanga criticized the structure of Namboard in his editorial as editor in Chief of the Times of Zambia. RB took it personally and confronted VJ in his office. Look at the hatred he had for Masebo confirmed by VJ and Munkombwe because she did not support his MMD presidency. Other leaders with magnanimity would have offered some posts to the MMD members that opposed him for the sake of party unity.
Those of you that are doubting RB’s incapability of such vengeance against Matahni who repossessed his house need only look at the way he treated VJ. Can any body explain why VJ was replaced as Campaign Manager by the lacklustre Dr. Kawimbe. Apparently during the UNIP era Mwaanga criticized the structure of Namboard in his editorial as editor in Chief of the Times of Zambia. RB took it personally and confronted VJ in his office. Look at the hatred he had for Masebo confirmed by VJ and Munkombwe because she did not support his MMD presidency Other leaders with magnanimity would have offered some posts to the MMD members that opposed him for the sake of party unity.
Those of you that are doubting RB’s incapability of such vengeance against Matahni who repossessed his house need only look at the way he treated VJ. Can any body explain why VJ was replaced as Campaign Manager by the lacklustre Dr. Kawimbe. Apparently during the UNIP era Mwaanga criticized the structure of Namboard in his editorial as editor in Chief of the Times of Zambia. RB took it personally and confronted VJ in his office. Look at the hatred he had for Masebo confirmed by VJ and Munkombwe because she did not support his MMD presidency Other leaders with magnanimity would have offered some posts to the MMD members that opposed him for the sake of party unity.
Why make public pronouncements like this?
If there’s wrong doing, report them to the police. Mahtani is behaving like Sata now.
If Mathani is given carte blanche authority by Sata to sell Zambia’s 500 euro bonds, then these bonds should be seen in the same light as Greek’s junk bonds. Zambia has a good credit rating but the why should the global markets trust a man who condones crime in his banking institution?
“Credit Suisse have resolved to fund the 500 million Euro bonds the Government intended to float and hoped to act as an agent to resell the bonds as a way of showing appreciation to the Zambian Government which had reversed the transaction.”
Isnt this corruption?
Just criticise Mahtani as an individual. Stuff like “Mwenye” this and “Indian” that are way out of line and only smack of bigotry; which should never see its daylight in this time and age.
Nonsense!!!!!!!!
#6 Hi Ba Mbuzi,
I have known this story for a while from a friend who used to work for FBZ. When Rupiah Banda retired he got a loan from FBZ to buy a house.
It was repossessed when he failed to pay for it. He then went to farm in the Eastern province. When he got back into govt., he wanted to revenge and hence the presecution of Mahtani. Mahtani, himself is not that clean but trying to fix him at the expense of all his employees was completely wrong.
I just wonder what ever Banda wanted to achieve for zambians, as president with all those great degrees, did he really have any vision for the zambians or was he a corrupt character to the cole?
By the way Mathani is not Indian he has been in zambia longer than some of you he is as zambian as any one of you
Man is Zambia Indian…True Indian for that matter..You can be in Europe and still be black. so is the case with Mathani… Frankly speaking Mathani is a crook..it is just he gave PF promisory notes.
Mantani won’t name the government official because it would be a breach of banking regulations disclosing a customer’s account information, he is not a loose canon motor-mouth like Sata..but we all know only a small little man like BUFF00N RB would be this vindictive and petty…just look at the way he was hell bent to see Masebo lose at all co$ts in September.
At least we have you Mahtani as our first witness.
I see nothing but a bunch of MMD vuvuzelas here. Surely, you chaps stick to the topic – is it true or false!
Canadian Embassy News paper headline for 7th december, reads Zambian envoy leaves under unclear circustances by AVINASH GAVAI. even developed countries wonder at what is happening in Zambia. he was seen off at the air port by all diplomats accredited to canada and they gave a speach at the air port. he will be missed especially for his initiatives. He was president of the Diplomatica association and he managed it so well. May God bless Nevers and his family.
Sata will soon burn his fingers with this Matani crook. Can you entrust the sale of 500 million Euro bonds to this crook who sees nothing but profit? Ok sata might get some handsome kickbucks for this but what will be the cost to the Zambian Tax Payer? Sata should quickly ask Chiluba in his grave how he was conned by Matani on the Carlington Maize scandal and he will learn a few lessons
I find it difficult to bring my head around the fact that Finance Bank was made to pay such exhorbitant sums of money for an audit on a bank, and then sell it for less than the cost of the audit process! I used to have alot of respect for my former lecturer Dr Fundanga but after this, I have very serious reservations. It just doesn’t make sense – why utilise a UK based accountancy firm when you have alot of accountancy firms in Zambia? Why use a South African law firm when you have thousands of law firms in Zambia? Does this start to explain the source of funds for the bicycles and and chitenge material prior to the election?
But ALL YOU GUYS talking about Sata trusting Matani. The truth is this that they are in cahoot. What other evidence do you need for you to see that this is daylight robbery? How was Mahtani selected to handle this massive transaction? How much is Mahtani going to make from it? This is a guy whose court case is practically still live and if Sata died today the case would resume! How does Sata entrust somebody who has been charged with serious financial crimes to handle a national asset? Sata will pay for this. Now, I actually hope that Sata lives forever so that we see him in court one day. He won’t rule forever and history has its funny twists and turns… Very very annoying. Sata is allergic to corruption???? He is laughing at YOU for buying his bull.shi.t! He is actually an *****.
You a just a disgruntled MMD vuvuzela.
But who is that official who had diiferences with my namesake Rajan? Why write a story where names are with held? That’s why I like the Post.
Can PF and Micheal Sata explain to Zambians how they can have the audacity to investigate and hound ZAMTEL, when they are going around behind the scene making millions of dollars by awarding Mahtani a contract like this?? No wonder ZAMTEL are refusing to be audited because they are able to see what is going on and the stupid doublestandards being applied. I can tell you that Zambia hasn’t seen anything yet. There has never been a government that started off with such high level of extreme corruption and double-standards ever in the history of Zambia. Even Chiluba and Rupiah, for all their faults, did not start off so brazenly as these PF thieves. It’s shocking what is going….and people are actually approving of it?
I will personally be interested to see how Finance Bank is received in South Africa as it tries to register there. I have not heard South African President say anything about Zambia since the elections and I’m sure there is no love lost between PF and the ANC, there was never one anyway. It’s just that industry heavyweights back by the political machinery will ensure that Mahtani receives clear messages when he attempts to list on the Johannesburg stock-exchange. It’s a small world, you see. I don’t care what people call me: I will never trust and Indian, fullstop. Liking has never even been a consideration.
Even though mistakes were made in the sale of FB, it is very difficult to ignore that Dr. Mathani flaunted the Banking regulation rules in the way that he ran this bank. Unfortunately, I am not sure if the true state of the Bank will surface during our time. The country has clear banking guidelines that FB did not follow (Mathani still owned a large percentage of shares in the Bank even when the law stipulated that he could only own 25%: the rest of the shares were divided among his immediate family members…etc.). Moving forward, it will be important for the PF Govet to ensure that FB operates within the laws, otherwise, this saga will come back to bite them in the you know what.
sweet talking everyone, billions to be made, salary increments and how showing how innocent he is…i think he is just another MMD cadre who got away with it and is using SATA bcoz he knows SATA will do anything to get back at RB..
:(( hello there, a very black man here calling from Africa, if you guys are black Africans then let’s get together urgently to discuss our eternal colonial curse and destiny. The colonial curse has removed our honesty, love for others, management skills and ability to evolve and develop. Many people are not aware of the effects of the colonial curse. Please inform all our politicians that the exorcism ritual is coming to black Africa and soon all the demons will be sent to hell! By the way, the exorcism ritual has already started in North Africa…
Kimasholi ba, lwabaziba hande.
So brain washed are Zambians that an Indian (Mwenye) Mathtani can come to zambia do what he wants (breaking every law), his bank is taken away for illegal dealing, Zambians cry that the bank should be taken back to local owners…. they see an Indian as a local owner??? Go to India and see if they will call you a Zambian a local owner.Like one blogger said for a Zambian to work the boss must be white, indian or chinese…. thats why they patronize an Indian calling him local because he some how looks like them, while a white South African (FNB) is a foreigner. I wonder if even God will let black into heaven, by now he has released what a mistake he made
I think zed is geting better
@ 44 Bonzo agreed.
@64 The Engineer. you are living as a foreigner , yes?
You epitomise what Bonzo is saying. Bigotry of the highest order . ci color.
Mahtani is abusing Sata’s gesture of appreciation for whatever secret financial support he gave to him. Mahtani’s allegations that “a K52 billion was externalised through the Bank of Zambia to named UK and South African-based companies” can plunge Zambia into serious financial trouble. He is provoking the wrath of multinational financial giants and hopes Zambia will fight his battles. Any Court litigations in favor of international firms could lead to the demise of Finance Bank with consequent loss of jobs by hundreds of its employees – resulting in loss of the much-needed tax revenue to Govt. Mahtani has discovered that Sata is the weakest and wooden-headed Zambian President prone to easy manipulation by a seasoned financial crook. Time for Mahtani, Mmembe and Nchito to feast.
What makes sad reading is how we tend to ignore historical pointers to our detriment. Rupiah’s history is littered with failures and backdoor dealings and anyone who was within his radius will tell you that is not leadership material. We must learn, fellow Zambians, to take stock of track records in order that we either are not surprised by what we get or are prepared to repel anything that is shady. RB was never leadership material. Mahtani has his weaknesses but he has done what anyone in his area does: Own a bank to rob one!
The only people who can tame cobras as pets are only Indians.So no wonder our man the president has been tamed by this swindler of an Indian.I only hope he will not be allowed to be corrupted.
I look forward to a time when our government can seriously get down to addressing the real issues affecting the commonest citizen on the ground. I also fear that with the current rhetorics and outbursts, the newest opposition may just gain some political sympaty from people who THINK……like MUsh…ta.
Ba Mathani, remember the carlighton saga. Sorry to remind you if youlive i glass house dont throw stones.
kakwendo ka a mathani, yaba! Nikawalala wosizila wamene uyu. You have to count your fingers after every handshake!
MMD where thieves?? Very sad that our Central bank gets involved in such rubbish> Billions for Auditing and Consultancy?? What kind of fees was that?? This is day time robbery. Where was the acting CEO or MD for the Bank to stop such Nonsense?? Zambians please let’s get serious?? Kugona Namuzuba sure?
He’s got shi**y taste in shoes. For a wealthy man.