In recent days there have been reports on several websites owned by Rajan Mahtani that that the banker is threatening and harassing journalists again, this time ordering his lawyers to pressure the hosting company GoDaddy to engage in censorship of free speech to silence Zambia Reports. The same tactics have been attempted numerous times in the past without any success, which may explain why Mahtani has chosen to publish his lawyers’ correspondence publicly as an attempt at intimidation.
What many readers may not know is that Mahtani has a long history of going after journalists and attempting to censor the media. Below is a reprint of an article published on Zambian Watchdog in February of 2010. The article has since been deleted from the website, however a copy exists on a Google archive.
Mahtani unleashes agents on Watchdog
Finance bank owner Rajan Mahtani has unleashed his agents to find out who is behind the Watchdog.
Mahtani, according to one of the persons who came into contact with Mahtani’s agents, wants to know who the editors of the Watchdog are, where their officers are and any other contact details.
This is in a bid to block any information relating to the ongoing investigations by the Drug Enforcement Commission over alleged altering of shares in the Ndola based Portland cement.
Last Friday DEC officers grilled for four hours Zaida Essa, the lawyer for Rajan Mahtani.
Sources told the Watchdog that this was about allegations that she fraudulently altered shares in Zambezi Portland cement.
The fraudulent changes in shares is said to be in favour of Rajan Mahtani.
The complaint to DEC was lodged by Odys Mandenakis and Antonio Ventriglias. When reached for a comment, DEC spokesperson John Nyawali said that it is true Essa was summoned for an ongoing enquiry.
But this story apparently angered the mighty businessman so much that yesterday his agents ‘combed’ Lusaka for any hint of the Watchdog contact details.
The Watchdog is operated from outside Zambia.
A few years ago, a branch of Finance bank was closed by the Central bank of Malawi folowing allegations of money laundering.
Below is what the DEC is investigating: Antonio Ventriglia and his family set up Ital Terrazzo Ltd a stone and tile making company. Four years ago they decided to set up a cement plant in Ndola.
The family approached Rajan Mahtani to organise start up project funds for the cement plant. Mahtani quickly proposed a stake in the company and the family gave up 49% shareholding to Mahtani.
The project required over USD100 million in start up funds. Zambezi Portland Cement (ZPC) was born.
Mahtani arranged finance facilities from the European Development Fund (guaranteed by BOZ) and from COMESA’s investment and development wing, the PTA Bank of Kenya.
Mahtani proceeded to source more funds from his own bank, Finance Bank, Finance Leasing and from Barclays Bank.
All these funds were never credited to the Zambezi Portland Cement Account. Mahtani paid suppliers directly for the construction of the plant.
Only residual funds to cover salaries and petty expenses were credited to the ZPC account which was also controlled by Mahtani’s appointee, Peter Khana.
When ZPC exhausted its borrowing limits, Mahtani persuaded the Ventriiglia family to stake their family asset Ital Terrazzo Ltd, and their family houses as collateral for further loans.
He persuaded them to register another firm, Cladava Mining Ltd and heaped new loans on the two firms to help finance the cement project.
Mahtani imported and employed 120 ‘Indian expatriates’ to compliment the 460 Zambian workers!
When the company decided to increase the plant capacity from 600 ton per day to 1000 ton per day, costs ballooned.
The plant needed additional capital funds! He proposed a change in shareholding to 42% for the Ventriglia and 58% for his Group of Companies.
Later he revised the shareholding to 25% for the Ventriglias and 75% for the Mahtani Group. The Ventriglias obtained more loans from Trust Merchant Bank of Congo to help service their earlier loan commitment to PTA Bank.
With over due schedules, and without commissioning production, ZPC debts mounted and PTA Bank –Kenya, and Finance Bank placed the cement plant under receivership.
Mahtani through Finance Bank also placed Ital Terrazzo under receivership claiming that the firm was liable for the ZPC debts! He even registered mortgage debentures with Ministry of Lands against Ital Terrazzo.
The loans which were obtained for the benefit of ZPC were now to be paid by the Ventriglias!
Mahtani proceeded to lay a criminal complaint against the Ventriglias. On 18th July 2008, police on the Copperbelt picked Antonio, his wife and children locked them on fraud charges! Their passports were confiscated and their travel outside Zambia banned!
They police charged the Ventriglias with offences of obtaining money by false pretences. The loans obtained were now sought under false pretences! To date, the matter has never seen the light of day in court!
Mahtani has proceeded to encumber the Ventriglias with numerous court actions. He has proceeded to change ownership of Zambezi Portland Cement without bothering to obtain consent nor authority from the Ventriglias.
At the last Zambia International Trade Fair, ignoring the pending cases in court contesting the shareholding of Zambezi Portland Cement, Mahtani informed the country that ZPC would commence production by August 15th 2009. He stated that the reported dispute with ‘minority shareholders’ had been resolved! (The Post 8th July 2009).
Antonio Ventriglia and Manuel Ventriglia have since lodged an official complaint to the police on the Copperbelt reporting the fraudulent manner in which Mahtani changed the shareholding of ZPC.
The family accuses Rajan Mahtani of stealing their shares in Zambezi Portland Cement. The family allege that the family shares were transferred to Finsbury Investments fraudulently, without their consent and knowledge.
They accuse Mahtani of even forging signatures on the share certificates submitted to PACRO by Mahtani’s agents.
To verify and support their claim that Mahtani forged their signatures, the family hired Jannie Viljoen Bester of South Africa. Bester is an international handwriting expert and document examiner who is a member of the South African Forensic Society.
Bester has confirmed and collaborated the claim of fraud and forgeries on documents submitted to PACRO Zambia.
Bester’s report is dated 28th October 2008 and sworn in the Registrar of the High Court in South Africa (Transvaal Division) for authentication for authority.
This matter was further reported to the DEC, and Police Service Headquarters. When Mahtani learnt of this, he called the family and mocked them that their allegations ‘’ will go nowhere since he runs a parallel government!’
The post Flashback: Mahtani Unleashes Agents on Watchdog appeared first on Zambia Reports.