Finance Bank Malawi, a commercial lending institution linked to Zambian business owner Rajan Mahtani, is suing the government of Malawi for $284 million after the Supreme Court of Malawi ruled that the central bank acted unlawfully when it revoked the institution's banking licence.
The legal team representing the Malawian government began cross-examining key witnesses in a Blantyre court regarding the methodology used to calculate the financial demand, which equals nearly 1 trillion Malawian kwacha.
The ongoing court proceedings follow a judgment that ended more than two decades of legal disputes regarding the initial closure of the financial business.
Breakdown of the compensation claim
The total financial demand includes $150 million for alleged constitutional rights violations and $134 million for loss of potential business earnings caused by the shutdown.
