Rajan Mahtani’s Finance Bank Files $284M Suit Against Malawi Over Licence Revocation BODY: Johannesburg, South Africa – Finance Bank Malawi, associated with Zambian tycoon Rajan Mahtani, is pursuing a substantial $284 million compensation claim against the Malawian government, stemming from the 2005 revocation of the bank’s operating licence. Established by Mahtani in 2005, Finance Bank Malawi was a commercial lending institution that ceased operations in 2006.
The bank’s licence was revoked by the Reserve Bank of Malawi in 2005 on allegations of financial irregularities, leading to a dramatic decline in deposits.
The compensation claim, totalling nearly 1 trillion Malawian kwacha, comprises $150 million for constitutional rights violations and $134 million for lost business earnings.
The Supreme Court of Malawi has ruled the licence revocation unlawful, prompting the bank’s pursuit of compensation.
The Malawian government has challenged the compensation claim, questioning its size and calculation method. Government lawyers have subjected the bank’s witnesses to extensive cross-examination, scrutinizing the valuation of the compensation in US dollars.
The case has significant implications for the rule of law and foreign investment protection in Malawi. It also highlights the challenges faced by banks in the region, particularly in the context of economic instability and regulatory environments.
As the legal battle continues, the outcome of the compensation claim remains uncertain, with the Supreme Court’s assistant registrar expected to make a final assessment.
The resolution of this case is closely watched by both local and international business communities, as it could set a precedent for similar disputes in the region.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Awogbemila Temitope
