Pension Fund buys Amaryllis Hotel amid controversy

The Public Service Pension Trust Fund has concluded the purchase of Amaryllis Hotel in Blantyre after Attorney General (AG) Frank Mbeta approved the transaction, sparking controversy. The deal between the fund and Yusuf Investment Limited has been marred by controversy bordering on corruption allegations which prompted the Malawi Law Society (MLS) to move the Anti-Corruption Bureau (ACB) last November to stop the transaction. Subsequently, ACB issued a restriction notice on the deal which was later lifted after it found no proof of corruption involving public officers involved.

In a December 18 2025 letter to the AG, acting director general Gabriel Chembezi said “the ACB did not find sufficient evidence to sustain charges of corrupt practices or abuse of office by the public officers involved in the transaction” and further sought direction. Chembezi further stated that the bureau’s investigations established that the fund and Yusuf Investment signed a contract for the sale of Amaryllis Hotel on November 7 2025 at a consideration of K128.75 billion, two days before MLS triggered investigation But in an interview yesterday, Chembezi said while the bureau found no sufficient evidence of corruption, it still harbours concerns about the deal, including operational risks and the sharp increase in the purchase price. “The lifting of the restriction notice did not necessarily signify an approval for the fund to proceed with the transaction,” he said.

And in a letter dated December 23 2025, Registrar of Financial Institutions MacDonald Mafuta Mwale, who was serving as Reserve Bank of Malawi governor at the time, said his assessment revealed “serious prudential, regulatory and fiduciary concerns” regarding the proposed acquisition. He warned that the transaction was likely to breach investment limits under the Financial Services Directive of 2025 and could create a serious liquidity mismatch and heightened concentration risk. On the other hand, in a letter dated December 28 2025 to MLS, Mbeta cleared the transaction on the basis that the ACB investigations did not find “sufficient evidence” of corrupt practices or abuse of office and advised the board to proceed after a final risk review.

[paywall]

He said most steps leading to the board’s resolution were taken by the fund’s principal officer George Jim who was suspended on October 27 2025 for alleged misconduct. The resolution authorising the acquisition was made on October 25. However, civil society organisations have questioned the sequence of events on the deal, saying they raise troubling questions.

Centre for Social Accountability and Transparency executive director Willy Kambwandira said the handling of the matter risks undermining public confidence. He said: “By publicly clearing the transaction of corruption within a very short period and asserting that there was no sufficient evidence without providing detailed reasoning or documentation, the AG risks creating a perception the review was cursory or politically influenced.”

[/paywall]