Mixed fortunes as fund sits on K1.1 trillion

In a typical case of mixed fortunes, the Public Service Pension Trust Fund says it hit K1.1 trillion in September 2025, but the Government still owes it K90 billion in contribution arrears.

Revelations about the fund’s liquidity come at a time it is embroiled in a conflict with the Registrar of Financial Institutions, who is also the Reserve Bank of Malawi (RBM) Governor, over its board’s alleged disobedience of orders and breach of financial laws in its investment drive, especially the prospective acquisition of Amaryllis Hotel in Blantyre.

In a progress report on the Amaryllis Hotel investment presented to the board by its Investment Committee, the fund lauds its growth, but highlights the potential shares bubble if not well managed.

A shares bubble is a situation where the market experiences a rapid, unsustainable surge in share prices driven by investor hype, speculation and crowd behaviour instead of underlying company fundamentals such as earnings or cash flow, which eventually leads to a ‘burst’ with dramatic sell-offs and crashes.

Reads the committee’s report in part: “The fund sits at K1.1 trillion as at September 2025 and keeps growing exponentially. This income needs to be prudently diversified and give proper breather to the share prices as our stock exchange market is small.

“Already, the registrar has constantly cautioned the fund due to the concentration of its investment in one asset, notably equities on the stock exchange market.”

Besides the K1.1 trillion, a September 2025 interim report of examination of the fund by the regulator shows that it had contribution arrears totalling K90.4 billion that govern

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Thus, the registrar or regulator urged the fund’s board to ensure that recovery of the outstanding pension contributions should include penalty interests.

To date, the fund has invested mostly in the tourism sector where it has partnered Old Mutual Investment Group (OMIG) in a project to construct Lifestyle Hotel near the Clock Tower in Blantyre to be managed by international hotel management firm Cresta Hospitality.

It also worked with Continental Asset Management in the acquisition of Sigelege Boutique Hotel in Lilongwe, now renamed Lifestyle Boutique Hotel.

However, the latest investment in Amaryllis Hotel has ignited debate that prompted RBM Governor George Partridge, wearing the hat of regulator or registrar of financial institutions, to order the fund to reverse the transaction for disobeying direct orders and breaching financial laws.

In a letter dated February 20 2026, he gave the trustees seven days to explain on why they should not face administrative penalties.

“Please take note that in proceeding with the transaction, the board disobeyed and failed to comply with directions issued by my office,” Partridge wrote.

But in a report dated January 15 2026 to the registrar, the fund’s board chairperson Chizaso Nyirongo said the Amaryllis Hotel investment was evaluated within the context of the fund’s long- term mandate to preserve and grow member funds in a manner consistent with its liability profile, liquidity requirements and diversification objectives.

He said the Amaryllis transaction was assessed not as a speculative hospitality venture, but as an established, income producing operating asset with a proven trading record, diversified revenue streams and strategic relevance within Malawi’s commercial and diplomatic ecosystem.