Mahtani finally sues Simataa

Finance Bank chairman Rajan Mahtani has finally dragged Simataa Simataa to court demanding to be paid back K1 billion after his former  director testified against his bank in the Lusaka  High Court where he revealed various alleged irregularities in the day to day operations of the financial institution.

Simataa has confirmed receiving the statement of claim saying he would not allow Dr Mahtani to intimidate him and it was now time for Zambians to know the truth about many things.

He said that it was unfair that a picture was portrayed showing that he (Simataa) had been paid for his silence.

In a statement of claim filed before the Lusaka High Court, Mahtani  is demanding among other things damages for breach of the agreement and a refund of K1 billion with interest at the current bank rates.

Mahtani states that Simataa breached the agreement when he testified against him in the High Court on June 5, 2013 in High Court before Judge A.M Banda Bobo.

He further states that in March 2014 Simataa freely prepared and offered a statement as a witness for Hotelier Limited in the High Court against the bank.

“On 21st March, 2014 Simataa (Defendant) herein freely caused this statement to be filed with the Court in the said cause. On 21sth March, 2014 Simataa freely attended Justice A.M Wood’s court  and freely tendered the said statement as his testimony and between the month of March and April, 2014,

“Simataa caused portions of his statement to be published in the Daily Nation newspapers and with this Mahtani has suffered loss and damages,” the statement of claim states.

This is in a case in which Mahtani has sued Hotelier Limited demanding compound interest on a loan obtained by people who were working for his bank.

Simata testified that there were irregularities in the manner the borrowing was being managed by the bank because the owners of Hotelier Limited were from Finance Bank Zambia Limited.

He said that after noticing irregularities in the manner the company bank accounts were being managed he demanded for a bank statement which revealed a lot of irregularities.

He also testified that Clause 8.2 of the Bankers Association of Zambia Code of Banking Practice in Zambia of which the Plaintiff is a party requires that terms and conditions should have been offered to Hotellier which in turn should have accepted the terms. The terms require the fact that the interest to be charged thereon and the manner in which it is to be calculated is mentioned.

Simataa also said that Finance Bank’s monitoring and control measures of the accounts by way of overdraft limit were not in place in the Hotellier accounts as provided by the Principles of the Bank for International Settlements [BIS] for the Management of Credit

Categorized | Home News

Comments are closed.

Our Sponsor

Jevic Japanese Auto Inspections

Social Widgets powered by