AG Mbeta denies authorising Amaryllis Hotel deal

Attorney General Frank Mbeta has dismissed assertions that his office authorised the Public Service Pension Trust Fund to purchase Amaryllis Hotel in Blantyre, saying he in fact advised the board to be mindful of prudential regulatory requirements. Reacting to a story published in The Nation of February 20 2026 under the headline ‘Pension Fund buys Amaryllis Hotel amid controversy’, the government’s chief legal adviser yesterday said that in his response to the Malawi Law Society (MLS) on a formal concern lodged on November 19 2025, he moved the Anti-Corruption Bureau (ACB) to probe allegations of corruption in the transaction. Mbeta said the ACB, which issued a restriction notice on the transaction whose sale agreement was signed in October 2025, established that there was no evidence of corruption or abuse of office and referred the matter back to the AG’s office.

In his response to the MLS dated December 28 2025, the AG stated: “In view of the magnitude of the transaction in this matter, and indeed out of abundance of caution, and, in order to ensure that the members’ savings are protected within the prudent investment principles and regulatory requirements, the board is advised to once again review the attendant risks and satisfy itself of the available mechanism for the management/mitigation thereof. Once that is done, the board is advised to proceed with and conclude the transaction in the best interests of the fund and its members.” Mbeta yesterday added that his office also carried out own investigations during interaction with the trustees of the fund. He further said he waited for a report from the Reserve Bank of Malawi (RBM), the regulator of financial services, regarding the issues, which the RBM Governor sent on December 25 2025.

In its report, RBM highlighted various risks that needed the attention of the fund’s board before proceeding with the transaction further. Said Mbeta: “I advised the [Pension Fund] board to once again review the risks involved and satisfy itself of the available mechanisms for management/mitigation of those risks prior to proceeding with the transaction. “Similarly on 6 January 2026, RBM Governor wrote me that the transaction should not proceed until the same risks were addressed to the satisfaction of the governor.

[paywall]

The governor also wrote directly to the board of the Pension Fund. As AG, I did not approve anything. If anything, I initiated investigations and, thereafter, advised the Fund on what to do prior to completing the transaction.

I did not authorise the transaction.” Further, he said his office’s involvement was not meant to replace the powers vested in the Pension Fund’s board of trustees; hence, he advised them to conduct another review of the risks involved for the board to decide on how to proceed. The Pension Fund’s board has not been available for comment. However, details have emerged that the transaction was concluded at an estimated K128 billion.

But in a related development, RBM Governor George Partridge last week ordered a reversal of the transaction pending addressing of the issues that the regulator of financial services earlier raised. The deal between the Pension Fund and Yusuf Investment Limited has been marred by controversy regarding procedure and whether this was a sound investment decision. Others alleged corruption in the transaction. However, 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.”—The Nation

[/paywall]