Africa-Press – Malawi. Malawi’s Attorney General, Frank Mbeta, has firmly denied claims that his office authorised the contentious purchase of the Amaryllis Hotel by the Public Service Pension Trust Fund (PSPTF), insisting that his legal advice has been deliberately or carelessly misinterpreted.
The Blantyre-based hotel, acquired at a staggering K128.75 billion, has ignited a storm of public debate, with legal experts, regulators, and civil society questioning whether such a massive investment was appropriate—or even lawful—for a pension fund tasked with safeguarding workers’ retirement savings.
In a strong rebuttal to media reports suggesting endorsement of the deal, Mbeta stressed that he never authorised the PSPTF to proceed with the purchase.
He clarified that the legal opinion issued by his office solely advised the trustees to remain compliant with prudential and regulatory requirements, leaving the final investment decision firmly in the hands of the pension fund board.
Mbeta further revealed that, after receiving formal complaints from the Malawi Law Society, his office took proactive steps to ensure the matter was investigated by the Anti-Corruption Bureau (ACB)—underscoring his commitment to transparency and the rule of law.
The hotel acquisition, completed in November 2025 with Yusuf Investment Limited, immediately raised red flags. The Malawi Law Society highlighted potential procedural irregularities and corruption risks, prompting the ACB to issue a temporary restriction on the transaction.
While the bureau later found insufficient evidence to pursue criminal charges against public officials, concerns about governance and risk management persisted, drawing sharp criticism from analysts and watchdogs alike.
Reserve Bank Orders Reversal
The Reserve Bank of Malawi (RBM) escalated the controversy by ordering the PSPTF trustees to reverse the purchase. The central bank accused the board of flouting financial regulations and ignoring directives issued in November 2025 to suspend dealings related to the hotel.
Despite the RBM’s intervention, Mbeta’s office remained clear of any involvement in authorising or influencing the transaction, highlighting a worrying misattribution of legal responsibility in public discourse.
Pension Fund Governance Under Fire
Beyond the immediate scandal, the Amaryllis deal has exposed systemic weaknesses in investment governance within Malawi’s pension funds. Experts warn that such high-risk transactions could jeopardize civil servants’ retirement savings, while the hotel’s sharp pre-purchase valuation spike has fueled suspicions of opaque dealings and inadequate due diligence.
As regulators call for a reversal and policymakers demand accountability, AG Mbeta’s office is standing firm, emphasizing that legal advice is not a green light for imprudent investments.
This case shines a harsh light on the blurred lines of responsibility in public finance, underscoring the need for stronger governance, transparent procedures, and clearer distinctions between legal counsel and executive decision-making.
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