Economy

Mahtani Holding Title Deeds to State Newspapers

rajan-mahtaniFinance Bank Chairman Rajan Mahtani allegedly holds the title deeds to both the Times of Zambia and the Zambia Daily Mail, the country’s two government-sponsored newspapers, a source informs Zambia Reports.

The deeds were offered by the publications as collateral on loans from Finance Bank. According to a senior source within the Patriotic Front party, the Zambia Daily Mail took out a loan with Finance Bank to purchase the computer used for the plate printing machine.

The Times of Zambia, which has had notorious problems making payroll, took out the loan in order to pay salaries of its workers.

This news follows recent revelations that Mahtani via Finance Bank had seized a property belonging to ZNBC, which had also taken out loans to pay salaries.

Finance Bank has denied taking over the ZNBC property, issuing a statement declaring “FBZ will not be drawn into discussing the affairs of its client in the press but will hasten to mention that no such steps have been taken against ZNBC.”

According to the source informing Zambia Reports of the loans to the two state media publications, Mahtani allegedly is aiming to exercise an option to seize ownership of the collateral instead of waiting for repayment of the debt.

“The Zambia Daily Mail may manage to pay back the loan, but the Times of Zambia is in a tough position,” the source said. “Mahtani is determined to get all the buildings for Times of Zambia in Ndola.”

Mahtani has a controversial history of taking over the assets of borrowers. He is currently fighting in court against the original owners of the Zambezi Portland Cement company who accuse him of an unlawful corporate raid, and also recently prevailed against the owner of the Radisson Blu Hotel in Lusaka, taking over ownership of the property that his bank had originally helped to finance.

15 Comments

  1. Bob

    If Mathani, a ‘Zambian’ can grab state property when the borrower company fails to pay back a loan, what would make anyone think that the many international lenders to this government will not do worse things? PF will take all of us including PF cadres down the drain. It is just a matter of time

  2. Dr. Lawrence Mwamba

    When you go to an individual or a Bank as is the case in this matter and borrow their money, you must pay it back with interest. there is a tendency with many a people and even companies to go borrow and not pay back, that is stealing. How do you expect that the lender is going to survive if you the borrower does not pay back. Money exchanges hands, money must be paid back.
    Mathani has a right to confiscate all the land and property that was put up for collateral. If he does not get his money he will eventually run broke. ZNBC Belongs to the Government and they should know better. Here in the Western World if you are broke you must declare Bankruptcy, Insolvent, declared in the court of law as being unable to pay debt. Government is bigger than Mathani, Pay the Man.

    • *Illuminist*

      Your command of the Queens language, leave much ufo one desired “Dr”. When you start a new sentence the first letter should be a capital letter. This i learnt is grade 2. And you become insolvent and declare Insolvency. Insolvent is an adjective while insolvency is a noun.This is basic grade 4 English. Ati “Dr ” my foot…

      • *Illuminist*

        Your command of the Queens language, leaves much to be desired “Dr”. When you start a new sentence the first letter should be a capital letter. This i learnt in grade 2. And you become insolvent and declare Insolvency. Insolvent is an adjective while insolvency is a noun.This is basic grade 4 English. Ati “Dr ” my foot…

      • *Illuminist*

        your command of the queens language leaves much to be desired “Dr”.When you start a sentence, the first letter is always a capital letter.This i learnt in grade two.And you become insolvent and declare Insolvency. Insolvent is an adjective while insolvency is a noun.This is basic grade 4 English. Ati “Dr ” my foot…

  3. Ital-Ndola

    Fake Dr. Lawrence Mwamba, a con of Mahtani writing rubbish. Mahtani mesmerises the people in trouble and presents himself as a savior. His gab fools them. In these cases he has been in league with politicians to give loan to government institutions and grab their properties since government will not bail them out as if it had to bail them out, it would in the first place not keep money idle with Finance Bank and Finance Bank uses government money to lend to government institutions and on default grabs their properties or forces government to continue keeping idle funds and in the end pay through their nose. Clock is ticking and Rupiah will be back in Statehouse to take Finance Bank back and give this time to zambians through LuSe. Mahtani’s Wish of listing the bank on LuSe will be fulfilled. He can fulfill the wish of listing lon London and Johannesburg sitting in Mumbwa maximum prison. You his relative are welcome to join him in 2015 and might end up staying the the maximum prison along with Barkat Ali, Chaturvedi, Ramesh, Kanan and the likes.

  4. Mwenye in lion skin

    @Kaya, if you do not have anything sensible to say, just shut up. At least have respect for your age. ZR is the only paper that has credibility and zeal to get the thieving politicians and their accomplishes to book. Mahtani has conned and deprived many hard working -upcoming Zambians of their businesses, properties and self-respect. He is a conman, money launderer and enemy of Zambia. On ZDM and TOZ, sources are from within.

  5. Ruth

    @Kaya. Well observed. Some few journalists have been up and down fighting Chibamba Kanyama from the moment news filtered he was joining the IMF. Just work hard and emulate him.

  6. ben

    Jesus is Lord

  7. It's over

    Blame the managers of the institutions , if u borrow and don’t payback , banks have the right to call on the collateral. Whether it’s Mahtani or Joe blogs . Mathani may have other issues , focus on those don’t compromise your arguments against him with this dull stupid logic. Funds learnt out in Banks by the way belong to depositors not the share holders

  8. mando

    These ‘loans’ where spearheaded by Noel Nkoma as he was a board member

  9. Dr. Lawrence Mwamba

    Point of Correction, *Illuminist*, first and far most you do not know me to be dragging my name and personal academic achievements in the mud. You were not there when I did my Grade 1 to VII and then moved on to Secondary School and thereafter College. I am a recipient of the Master Of Divinity Degree from Gordon Conwell Theological Seminary and I hold a Doctor Of Divinty Degree From Christian Bible College Of Rocky Mount North Carolina USA. All you know is a Medical Doctor, what a shame.
    Your command of the English language is pitfull, while you point at others four are pointing right back to you.
    The grammatical corrections you are rendering to me are out of the norm:
    To Be Solvent : means having enough money to meet ones liabilities. On The other hand ,
    To Be Insolvent : means unable to pay ones debt or relating to insolvency. So what is the big deal there Mr. Professor.

    • *Illuminist*

      “Doctor Of Divinty Degree From Christian Bible College Of Rocky Mount North Carolina USA”…THAT EXPLAINS EVERYTHING. WHO STUDIES SUCH RUBBISH??

  10. Dr. Lawrence Mwamba

    *Illuminist* You have a bone to pick with me, I will sue you for defamation of character. You think you can stand on the streets and insult people, pull down characters at will. You have got it coming. We will uncover you and sue you.

  11. Samuel

    Mahtani has title deeds of State House in his pockets.

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