Pension Fund says Amaryllis Hotel deal intact

Trust Fund (PSPTF) yesterday said it has not rescinded the K128.75 billion purchase of Amaryllis Hotel in Blantyre, but stressed that discussions with regulators are ongoing. In a written response to a questionnaire yesterday, PSPTF public relations officer Yamikani Sekeni said the fund’s board of trustees takes matters of regulatory oversight seriously and is currently engaging constructively with the Registrar of Financial Institutions, who is Governor of the Reserve Bank of Malawi (RBM), to address any concerns. The position comes after RBM Governor George Partridge on Friday wrote the fund, directing it to rescind the sale agreement for the upmarket hotel, accusing the public pension body of disobeying direct orders.

Sekeni said a comprehensive submission will be made within the stipulated timeframe. He said : “Regarding the directive to rescind the agreement, the matter is presently under legal and regulatory review with competent institutions. “The fund will act strictly in accordance with the law and in consultation with the registrar to determine the appropriate course of action.

As a regulated institution entrusted with safeguarding pensioners’ funds, the PSPTF is guided at all times by the principles of sound governance, prudence and protection of members’ interests.” Partridge’s query on February 20 2026 followed a December 23 2025 communication by his predecessor MacDonald Mafuta- Mwale who, while observing “serious prudential, regulatory and fiduciary concerns” regarding the proposed acquisition, also said that should the fund’s board opt to proceed with the transaction, it needed to make a substantive submission to his office providing a clear basis, in terms of viability of the proposed investment and how member funds would be safeguarded. CommunicationThe Nationhas seen shows that the fund’s board furnished RBM with the submissions, identifying and assesing key risks associated with the transaction, including macroeconomic, operational, market, financial, regulatory and ESG related risks. The new twist also comes amid queries on how the price escalated from an initial market value of K47 billion by Knight Frank as at July 13 2023 to K128 billion.

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In an interview yesterday, property valuation expert Yeremiah Chihana of YMW Property Investment Co, famed for valuating the estate of former president Bingu wa Mutharika at K61 billion in 2012, said the cost escalations for Amaryllis Hotel were inevitable. He said this was due to the time lag between evaluationand final sale agreement during which devaluation, foreign currency shortages and general price accelerations markedly changed market conditions and the hospitality industry in particular. Said Chihana: “If it were me, presently, I would have valuated that [Amaryllis Hotel] between K156 billion and K167 billion.

Look at inflation in 2023, how that changed over time, coupled with devaluation of the kwacha. At some point raw materials for hotels were exempted from VAT [value-added tax], but that changed, obviously that pushes the prices up?” In November 2023, three months after that valuation report in July that year, RBM devalued the kwacha by 44 percent, a development that sent shock waves in the economy, resulting in skyrocketing prices of goods and services. Responding to concerns on pricing, Sekeni said the board is reviewing the entire transaction process to ensure full alignment with applicable financial and regulatory requirements.

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