Africa-Press – Malawi. A former Governor of the Reserve Bank of Malawi (RBM) has delivered a blistering indictment of the Public Service Pension Trust Fund, calling for its licence to be revoked over what he described as a brazen and unlawful push to buy the controversial Amaryllis Hotel.
Dr. MacDonald Mafuta Mwale, appearing before Parliament’s Public Accounts Committee (PAC), laid bare what he sees as outright defiance of regulatory authority—warning that the Fund’s actions effectively held the country “at ransom.”
At the heart of the scandal is the Fund’s decision to bulldoze ahead with the hotel purchase despite a clear directive from the RBM not to proceed until serious concerns were addressed.
“This is the first time for me to see an institution disobeying the Registrar’s order,” Mafuta Mwale said, his frustration unmistakable.
Speaking in his former capacity as Registrar of Financial Institutions, Mafuta Mwale said the breach was not just procedural—it was systemic and dangerous. He urged the central bank to act decisively: revoke the Fund’s licence, impose strict spending controls, and institute sweeping reforms.
His criticism went further, questioning the ethical backbone of the Fund’s leadership.
“Even without an RBM order, they had a moral obligation to stop. This deal has implicated a lot of people,” he said. “I don’t see Old Mutual, I don’t see NICO behaving this way.”
The PAC inquiry is probing the ballooning cost of the Amaryllis Hotel—from an initial K47 billion to a staggering K128 billion—raising red flags of possible abuse, collusion, and financial misconduct at the highest levels.
A growing list of high-profile figures has been dragged into the controversy, including economist Collins Magalasi, former Chief Secretary to the President and Cabinet Colleen Zamba, former State House Chief of Staff Prince Kapondamgaga, Finance Minister Joseph Mwanamvekha, and Youth and Sports Minister Alfred Gangata.
Zamba, a central figure in the saga, has so far dodged appearing before the committee, casting further doubt over accountability as PAC intensifies its probe.
In a leaked draft report, PAC pulls no punches—branding the hotel acquisition a sham investment and recommending immediate criminal investigations against Zamba, Kapondamgaga, and Chizaso Nyirongo, the former OPC legal director who later chaired the Fund’s board.
The net widens further:
George Jim, suspended principal officer, is accused of issuing commitment letters without board approval;
Boyd Hamela, acting principal officer, is faulted for pushing ahead despite professional warnings;
Idrissa Mwale, investment committee chair, allegedly signed a sale agreement unseen by most trustees;
Dr. Maxwell Tsitsi, OPC Principal Secretary, is cited over an irregular appointment process.
In a stunning twist, PAC has also recommended the immediate suspension of Anti-Corruption Bureau (ACB) acting director Gabriel Chembezi, citing serious concerns over how the bureau handled its initial investigation—described as shallow and blind to glaring red flags.
As PAC hearings continue, the scandal is rapidly evolving from a questionable property deal into a full-blown governance crisis—one that now tests whether regulators will act decisively or allow impunity to take root at the highest levels.
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