The Bank of Nevis International (BONI) has taken the Bank of Zambia and the Zambian government to court following the compulsory liquidation of Investrust Bank Plc.
The legal action follows a 2021 transaction in which Nigerian investor Michael J. Prest acquired a 24.8% stake in Investrust for $40 million. Following the purchase, the Bank of Zambia refused to recognize the acquisition, citing a lack of regulatory approval, before shutting down and liquidating the bank in early 2024, effectively wiping out the investment.
International lawyer Robert Amsterdam, Founder of Amsterdam & Partners LLP, is representing the firm. Speaking on the dispute, Amsterdam questioned the regulator’s actions and warned of the wider economic impact on the country.
“To me, there is only one explanation, would be a possibly improper purpose that the bank was looking after the interest of some other investors and some other financial institutions, because I have no way of understanding why a regulator would literally damage the prospects for a fintech hub. The government and the regulator should be sitting down to negotiate what should have happened years ago and guarantee that this won’t happen to another investor.”
–ChannelAfrica–
