Africa-Press – Malawi. The Secondary School Teachers Union (SESTU) has demanded the resignation of the Board of Trustees of the Public Service Pension Trust Fund (PSPTF) within three weeks following the fund’s controversial attempt to purchase the Amaryllis Hotel without consulting key stakeholders.
SESTU says the attempted acquisition has raised serious concerns about the prudence, transparency and fiduciary responsibility of the board in managing pension contributions made by thousands of public servants, including teachers.
According to the union, teachers contribute to the pension fund every month from their modest salaries with the legitimate expectation that their retirement savings will be safeguarded and invested wisely to ensure sustainable growth and financial security after retirement.
“The circumstances surrounding this transaction have significantly undermined our confidence in the board’s stewardship of our funds,” said SESTU General Secretary, Frank Druwen Moyo.
SESTU argues that the board’s decision to pursue the purchase has sparked widespread concern among members, especially amid reports that the hotel was being considered for acquisition at a substantially higher and questionable price after an earlier offer had been rejected at a lower cost.
The union has since commended the Executive Director of Financial Institutions—who also serves as Governor of the Reserve Bank of Malawi (RBM)—for intervening and directing that the transaction be rescinded.
SESTU says the RBM’s action demonstrates a strong commitment to safeguarding the interests of pension contributors and upholding financial prudence in the management of pension funds.
“We demand the resignation of the PSPTF Board within three weeks. Such a step would pave the way for independent and transparent investigations into the board’s resolution to purchase the hotel at a substantially higher and questionable price after an earlier rejection at a lower cost,” Moyo said.
He warned that failure by the board to comply with the demand would leave the union with no choice but to pursue further action.
“Failure to heed this demand will compel SESTU to take appropriate action to ensure accountability. Any consequences arising therefrom shall rest solely with the board,” he added.
SESTU has since formally written the PSPTF board notifying them of the union’s demand for their resignation.
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