Africa-Press – Malawi. The Malawi Law Society (MLS) has raised serious red flags over a controversial plan by the Public Service Pension Trust Fund to purchase a hotel—warning that the transaction appears riddled with procedural breaches, conflicts of interest, and possible manipulation of a newly installed Board of Trustees.
In a strongly worded statement issued on 19 November 2025, the MLS said it had received detailed information suggesting that the deal may put the pensions of thousands of Malawian public servants at significant financial risk.
According to the Society, the Fund had originally rejected the hotel purchase in January 2024 after expert analysis deemed the acquisition unviable at a price of MK47 billion. But MLS reports that this decision was later mysteriously overturned following direct contact from the seller’s financial adviser to one of the Fund Managers—who then allegedly made renewed presentations pushing for the deal.
By the time the matter resurfaced, the price had reportedly ballooned dramatically, with figures allegedly reaching between MK115 billion and MK145 billion—an escalation the Society describes as deeply alarming.
The MLS cites several major concerns:
Lack of Independent Due Diligence and Potential Conflict of Interest
The statement alleges that the Fund ignored essential safeguards, including independent hotel valuation and expert review. Worse, MLS warns that the entity which produced a glowing “Viability Business Analysis Report” may be linked to the hotel owner—raising the possibility of a conflict of interest.
Pressure on a New Board of Trustees
Another serious allegation is that the Fund’s newly constituted Board—appointed only in September 2025—was being hurried into approving a transaction that the previous Board had rejected. The MLS questions why such a fresh Board would be rushed into authorizing a multi-billion kwacha deal without adequate time for scrutiny.
Suspicious Timing of Key Personnel Changes
The Society further highlights concerns over the sudden suspension of the Fund’s Principal Officer on 27 October 2025, followed almost immediately by the appointment of an Acting Principal Officer and a signed resolution supporting the hotel acquisition. MLS suggests the sequence of events “has been called into question.”
Based on these allegations, the Malawi Law Society says the integrity of the entire process is compromised and warns that proceeding with the transaction could jeopardize the retirement savings of Malawi’s public workforce.
The Society is demanding an immediate suspension of the deal and calling for a full, independent investigation by the Anticorruption Bureau, the Minister of Finance, and the Attorney General.
MLS insists that the new Board must be allowed to conduct a fresh, pressure-free assessment.
“The pensions of Malawian public servants must not be sacrificed for a questionable and potentially detrimental investment,” the statement reads.
The Society has vowed to continue monitoring the situation closely to ensure accountability, transparency, and protection of public interest.
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