Shamed former Barclays chief Bob Diamond (Image: Getty)
The flamboyant finance boss – once dubbed “the unacceptable face of banking” – will be accused in court of leaving partners nearly £80 million out of pocket.
He is alleged to have lured investors with a bold promise of creating new jobs, businesses and wealth for locals in beautiful but impoverished Zambia.
The Daily Express has learned Zambian banker Rajan Mahtani and wealthy British expat Joan Craven claim to feel “devastated” and “betrayed” after doing business with him.
They are suing the company he founded – Atlas Mara – for damages of $100 million (£80 million) in the High Court, London in a trial to begin later this month.
One source said: “There is such an injustice here. Everything was agreed, and everything has been breached.”
Mr Diamond’s latest controversy comes 11 years after he was forced to quit as Barclays chief executive over the notorious interbank rate-fixing scandal.
The company was fined a record £290 million after admitting its staff profited by manipulating the rates which determine mortgage payments.
American-born Chelsea FC fan Mr Diamond was given his “unacceptable” tag by Lord Mandelson for allegedly making a fortune through “unearned” bonuses.
His doomed African adventure began with an ambitious plan to set up Atlas Mara as a Pan-African Bank with branches across the Continent.
It is claimed he set out to woo potential backers at glittering investment “road shows” at luxury hotels and restaurants across the globe.
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The pair used a champagne reception at the Cafe Royal in London’s Piccadilly, to persuade Dr Mahtani to sell his Zambian bank FBZ.
Devout Christian Dr Mahtani, 73, wanted a responsible new owner for the firm he built from scratch because his daughters had no interest in taking it over.
He was backed by his friend and business partner Mrs Craven, 88, a Yorkshire accountant who moved to Zambia with her lecturer husband Ian, 50 years ago.
A source said: “Bob Diamond gave this incredible story about how he wanted to create this pan-African bank which was going to provide jobs and financial support for the locals.
“This was music to Dr Mahtani’s ears. He thought this was going to be his legacy.
“Diamond is a very, very smooth operator. You don’t get to become the global CEO of one of the top banks in the world by being an idiot. The guy knows his stuff.”
Bob is dubbed “the unacceptable face of banking” (Image: PA)
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It is understood the claimants will allege at the High Court they lost a fortune after transferring FBZ, based in the Zambian capital Lusaka, to Atlas Mara in 2016.
Although Diamond founded the company and sold his venture to the claimants, he then took a backseat role and never actually visited Zambia.
He is not named as a defendant in the forthcoming case but the claimants are expected to tell the court he played a key role in drawing them in.
Lawyers for the pair claim they expected to earn more than $200 million (£165 million) by selling the Lusaka-based enterprise.
They were devastated to receive just $50 million (£41 million) and see the business they built from scratch shed hundreds of jobs in the aftermath.
The source said: “Everything was agreed, and everything has been breached. Atlas Mara did everything they could to not honour their commitment and obligation.
“But for Dr Mahtani and Mrs Craven, their word was their bond. That is how they were brought up.”
Dr Mahtani, a father-of-two, established FBZ nearly 40 years ago and it blossomed into a thriving national firm with more than 70 outlets and 800 employees.
He met Mrs Craven, now a widow, when they were young accountants and she became a friend and business partner in FBZ.
The sale went through in June 2016 for a mixture of cash up front, shares in Atlas Mara and “deferred payments” to be made later.
However, the claimaints will argue in the month-long trial that the shares plummeted in value and Atlas Mara failed to deliver the postponed fees.
They have hired Omnia Strategy LLP, the law firm founded by Sir Tony Blair’s wife Cherie to represent them and a senior KC for the court hearing.
The Daily Express has contacted Atlas Mara and Atlas Merchant Capital, the New York company for which Mr Diamond now works as chief executive, for comment.
Bob Diamond’s downfall
Bob Diamond was dubbed a “greedy gambler” and “the unacceptable face of banking” during his rollercoaster years in the City of London.
The controversial Barclays chief executive was dubbed a symbol of the arrogant “bonus culture” exposed by the economic crash of 2008.
In 2010, Business Secretary Lord Mandelson accused him of making £63 million by “dealmaking and shuffling paper around”.
He added: “That to me is the unacceptable face of banking. He hasn’t earned that money.”
The company disputed the figure and a year later, Mr Diamond’s posturing infuriated the Commons’ Treasury select committee.
Defending his £8 million bonus, he said: “There was a period of remorse and apology for banks and I think that period needs to be over.”
American-born Mr Diamond owned a vast house with a pool in exclusive Kensington, west London, a £24m New York penthouse and homes in Colorado and Nantucket.
The father-of-three was also a keen golfer, fan of Chelsea FC and New England Patriots American football team, and chaired the Old Vic Productions theatre board.
His downfall came in 2012 when it emerged that Barclays traders plotted to boost profits by fixing benchmark interest rates which affect mortgages.
The company was fined £290 million after admitting staff artificially inflated and deflated the London Interbank Offered Rate or Libor.
Initially, Diamond refused to resign and the company stood staunchly by him.
But he eventually went under pressure from Bank of England governor Mervyn King and left with a £2 million bonus – slashed from £20 million.
Chancellor George Osborne called it “the right decision for Barclays – and for the country”.
He added: “Bob Diamond’s resignation is the first step towards the new age of responsibility we need to see.”
Lib Dem peer Lord Oakeshott said: “This is a great day. Bob Diamond was the greedy gambler, personified. “
