Few months back, Finance Bank Zambia was on the verge of closure. The bank suffered heavy losses due to a negative reputation that left the bank with no customers, clients or businesses. Banks belong to a very sophisticated industry wherein any bad publicity or news can hugely impact the reputation and thereby the businesses. The same occurred with Finance Bank, an establishment of Dr. Rajan Mahtani. The accusations were made by Simaata Simaata, who was once an employer of the bank itself. After Simaata was ousted from the bank due to his engagement with unlawful practices and after he signed an agreement with the bank, he started spreading these negative rumors, essentially breaching the agreement.
A case was launched at the Supreme Court Zambia by Finance Bank taking support from Dr. Rajan Mahtani. The case went for many months, during which Finance Bank also suffered reputational loss and financial damage due to other coordinated attacks. The final judgment was delivered by the Supreme Court judges on June 2017. The statement of the judges is as follows, “Even in the absence of a contractual commitment, honesty and integrity demand that people follow through on what they say they are going to do. Their credibility is after all built on their words and actions. Betrayal of compromises and settlements is a tragedy that only evidence diminished integrity. All circumstances considered, we are satisfied that the respondent (Simataa) did in fact breach clause 5 of the Settlement Agreement.”
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