http://www.daily-mail.co.zm/media/news/viewnews.cgi?category=8&id=1296255748

A LUSAKA magistrate’s court on January 28 dismissed Lusaka businessman Rajan Mahtani’s application to refer his money laundering case to the High Court for determination on constitutional issues, saying doing so will amount to duplicity.

Chief resident magistrate Charles Kafunda said in his ruling allowing an application which is also before the High Court is an abuse of the court process.

This is in a case in which Mahtani is charged with unlawful acquisition of 25 percent voting shares in Finance Bank Zambia (FBZ) and money laundering activities involving over K81 billion.

Mahtani is charged with acquiring beneficial interest in voting shares of a bank without prior approval in writing from the Bank of Zambia, contrary to section 23 (1) (2) (a) and (6) of the Banking and Financial Services Act number 21 of 1994.

In count two, he is charged with the offence of money laundering, contrary to section seven of the Prohibition and Prevention of Money Laundering Act.

“I find the application by the defence to be vexatious. I will not refer the matter to the High Court for determination,” Mr Kafunda said.

He said Mahtani had an opportunity to raise constitutional issues before the case was taken to court, but he decided to file a petition in the High Court.

Mr Kafunda said the subordinate court is part of the judicial system, and it cannot be oblivious to the duplication of duties.

Earlier, one of Mahtani’s lawyers, Stephen Malama, said the defence has filed a notice under article 28 (2) of the Constitution requesting the court to refer the matter to the High Court.

Mr Malama said the court can only deny the defence a request if it is frivolous.

Drug Enforcement Commission prosecutor Mable Nawa said it was the duty of the court to deny or allow a request to refer any matter to the High Court.

The offence is alleged to have been committed between January 1, 2003, and December 31, 2009, in Lusaka.

In count two it is alleged that Dr Mahtani, jointly and while acting together with other unknown persons, engaged directly or indirectly in a business transaction that involved the acquisition or retention of more than 25 per cent shares in FBZ.

About K81,700,253,230 was realised from the said illegal activity.

The offence is alleged to have been committed between January 1, 2003, and December 31, 2009, in Lusaka.