Finsbury Investments is one of the top companies established and run by businessman Dr. Rajan Lekhraj Mahtani. The company has established its name as one of the most transparent and ethical companies in Zambia and is significantly dedicated towards the welfare of the Zambian economy. As a result, the case between Finsbury Investments and the ESATD (Eastern and Southern African Trade and Development) Bank quickly became a media news. Finsbury Investments sued the bank at the Lusaka High Court with claims that the company suffered significantly due to the damages arising from conspiracy by the bank as well as wrongful interference resulting in Finsbury’s illegal removal as shareholder at the Radisson Blue at Lusaka.
Finsbury Investments made a statement in which it claimed that the bank unethically allowed Ody’s to change the hotel’s share capital and issue newly established shares which were different from the originally and authentically established before. Furthermore, Finsbury Investments also alleged that the bank took an illegal step on 27th September 2012 when it issue a specific letter without creating any application process and without informing the company. In this letter, it was written that Finsbury Investments have been discharged of shareholding. The incident clearly indicated issue of lobbying wherein favours were given to Ody’s with engaging in unethical practices.
As a result of this unethical changes in the shareholding pattern, Finsbury Investments suffered huge losses. Ody’s increased their share capital of the hotel in an unlawful manner and issued the shares to its own family members. As a result, Finsbury Investments did not receive injunctive by High Court. As a result of the significant financial loss, Finsbury Investments was forced to close many of its deals and suspend its advanced and ongoing projects. Some of these projects included constructing state-of-the-art medical facility, housing project, retail banking project and Premier Health Clinic at Lusaka. Finsbury Investments also claimed that as a result of this negative publicity, the business and future growth opportunities of the company has been severely impacted.
