By Atlas News Desk:
The National Anti-Corruption Alliance (NACA) and the National Advocacy Platform (NAP) have called on Malawi’s Public Accounts Committee (PAC) to urgently investigate the controversial acquisition of the Amaryllis Hotel by the Public Service Pension Trust Fund (PSPTF). The organizations warn that the deal could put the retirement savings of thousands of teachers, nurses, police officers, and civil servants at serious risk.
In a letter to PAC Chairperson Michael Kaiyatsa, NACA Chairperson Michael Kaiyatsa and NAP Chairperson Benedicto Kondowe emphasized that this is not merely a commercial matter but a question of public trust and governance.
“What is unfolding around the proposed acquisition of Amaryllis Hotel is exposing the retirement savings of ordinary public servants to a transaction that raises serious prudential, fiduciary, and governance concerns,” they stated.
The petition highlights that the Subscription and Asset Sale Agreement for the hotel was signed on 17 November 2025 at MK128.75 billion, following a Board resolution that empowered the Investment Committee to finalize the transaction.
Figures associated with the deal have since risen to approximately MK147 billion, prompting questions about valuation discipline and investment prudence.
Records show that on 17 January 2024, the PSPTF Board had resolved to withdraw from the purchase after professional advice indicated the investment was not viable at around MK47 billion.
Despite this, the transaction resurfaced, with correspondence in March and May 2024 reflecting renewed commitment to pursue the acquisition.
NACA and NAP note that the reversal of the withdrawal decision followed fresh presentations from the seller’s financial advisers and another fund manager, recommending the purchase at a significantly higher price.
In a formal response dated 28 December 2025, the Attorney General advised the Board to carefully review the risks and ensure safeguards were in place to protect members’ savings before proceeding.
However, there is no evidence that these recommendations were implemented before the transaction moved forward.
“The critical question for parliamentary oversight is what materially changed between January 2024, when the deal was declared unviable, and November 2025, when it was concluded at nearly three times the original valuation,” the petition reads.
NACA and NAP also raised concerns over the valuation trajectory of the hotel.
Independent valuations in mid-2023 estimated the property between MK47 and MK83 billion, yet the final agreement was signed at MK128.75 billion.
Regulators warned that proceeding with the transaction could breach investment limits and create a liquidity mismatch, potentially jeopardizing pension benefits.
The organizations questioned governance and the timing of key events. On 25 October 2025, the Board empowered the Investment Committee to finalize the transaction.
Two days later, the Principal Officer was suspended in connection with the deal, and on 17 November 2025, the agreement was signed.
“This sequence raises concerns about whether the trustees were allowed to exercise independent fiduciary judgment or whether the transaction was accelerated through administrative pressure,” the petition said.
NACA and NAP are urging PAC to investigate the full record of the withdrawal decision and its subsequent reversal, summon the PSPTF Board, the Attorney General, investment managers, and advisers to testify under oath, and examine compliance with prudential regulatory warnings.
They also called for an immediate halt on further financial disbursement pending a forensic audit into valuation methodology, advisory independence, and fiduciary compliance.
“Terms such as liquidity mismatch and concentration risk may sound technical, but for the ordinary public servant they translate into one question: will my pension be safe?” the petition states.
As public scrutiny intensifies, PAC’s intervention is being closely watched by civil servants and citizens alike. Analysts say a thorough inquiry could restore confidence in the pension system and set a precedent for greater oversight of public investments.
