Missing Minutes, Lingering Questions: Trustees Say Pension Fund Board Rejected Amaryllis Deal Before K128.7bn Purchase

In a revelation that has deepened the mystery surrounding the controversial K128.7 billion purchase of the Amaryllis Hotel, former trustees of the Public Service Pensions Trust Fund have told Parliament that the board had already resolved not to buy the hotel—but the minutes documenting that decision have mysteriously disappeared. Appearing before the Public Accounts Committee on Friday, former board chairperson James Kumwenda delivered testimony that left lawmakers visibly unsettled. Kumwenda told the committee that during an extraordinary board meeting held on January 17, 2024, trustees unanimously agreed that the pension fund should not proceed with acquiring the Amaryllis Hotel.

But the written record of that critical decision—the official minutes of the meeting—cannot be found. The revelation has intensified scrutiny over how the deal eventually went ahead despite the board’s alleged rejection. “This matter was discussed at length, and the board resolved that the fund should not proceed with the acquisition,” Kumwenda told lawmakers during the televised hearing.

Yet when the committee requested the official minutes documenting that resolution, Kumwenda disclosed that the records are now missing. For a pension fund entrusted with billions of kwacha belonging to Malawi’s public servants, the disappearance of such a crucial document has raised troubling questions about governance and accountability. Kumwenda’s testimony also confirmed that the board’s decision was influenced by warnings from NICO Asset Managers, one of the fund’s professional investment managers.

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On Thursday, the firm’s chief executive officer Daniel Dunga told the parliamentary committee that his company walked away from the deal in December 2023 after identifying serious investment risks. Dunga said the firm advised the pension fund that purchasing the luxury hotel could expose the fund to liquidity risks—a situation where the investment could not easily be converted into cash to meet pension obligations. He also warned that projected returns from the hotel were unlikely to meet the performance expectations required to safeguard pensioners’ savings.

“We raised concerns about liquidity and the expected returns,” Dunga told the committee, explaining why the firm decided to withdraw from the transaction altogether. According to Kumwenda, the idea of acquiring the hotel was first introduced during the board’s 21st ordinary meeting in 2023.

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