Finsbury Investments is among the top financial and investment firms in Zambia. The company was established by Dr. Rajan Mahtani. Just like his reputation, Dr. Mahtani’s companies are also known to have an ethical and transparent business practice. Finsbury Investments recently filed a complaint at the Lusaka High Court against Eastern and Southern African Trade and Development bank. As a result of the companies involved in this complaint, the news started gaining traction and was picked up by several media outlets. In this complaint, Finsbury Investments claimed that it suffered huge revenue and reputational losses due to the unethical changes in the shareholding pattern of Radisson Blue at the Lusaka.
In their complaint, Finsbury Investments claimed that the identified bank allowed Ody’s Limited to change the share capital of Radisson Blue in an unethical manner. The shares belonged to Dr. Mahtani owned Finsbury Investments and the newly issued shares by the Bank were different compared to the original and authentic shareholding. Finsbury Investments also claimed that the bank engaged in an unethical activity in the year 2012. The issues an unethical letter without creating any formal application process as well as without informing Finsbury Investments. In this letter, the bank allegedly wrote that Finsbury Investments was agreeing to the changes in the shareholding pattern of Radisson Blue and giving away majority shareholding to the owners of Ody’s limited. Furthermore, the letter also claimed that the received shares can be transferred to the private equity of the owners of Ody’s Limited, who comprise of the family members of the company.
Finsbury Investment clearly established that it did not allow the letter and the changes in the shareholding was an unethical move from the Bank. This unethical change in the shareholding resulted in significant loss for Finsbury Investments. The company has been forced to stall many of its ongoing projects including housing facility, medical institute, health clinic and retail banking. Finsbury Investments is expecting revert from the court in this matter.
