By Burnnet Munthali
The controversial K128.7 billion purchase of Amaryllis Hotel in Blantyre has entered a new legal phase, with the financial regulator asking the High Court to force the Public Service Pension Trust Fund (PSPTF) to reverse the transaction and recover money already paid to the seller.
George Partridge
The Registrar of Financial Institutions, who is also Reserve Bank of Malawi (RBM) Governor George Partridge, has obtained a mandatory injunction against the trustees of the pension fund, requiring them to rescind the hotel purchase agreement and recover funds paid under the deal.
The matter is registered as Commercial Case Number 250 of 2026 at the High Court Commercial Division in Lilongwe.
The court has also authorised summons to be served on the 12 trustees through newspaper publication, with the trustees given 30 days to collect the summons or risk contempt of court proceedings.
The injunction was obtained on August 10, 2026, and the proceedings also seek compliance with an administrative penalty issued by the Registrar on May 4, 2026.
The latest court action adds another layer to a dispute that has already attracted regulatory, parliamentary and anti-corruption scrutiny over the purchase of the hotel from Yusuf Investments Limited.
The RBM earlier fined the trustees K40 million after the fund failed to submit the sale agreement documentation within the required timeframe.
The regulator also directed the fund to reverse the transaction.
At the centre of the controversy is the value and manner in which the transaction was conducted.
Parliament’s Public Accounts Committee investigated the acquisition after the fund agreed to purchase Amaryllis Hotel for about K128.7 billion, prompting questions over the investment process, valuations and governance of the pension fund.
However, the parliamentary inquiry also heard evidence supporting the purchase price.
EMJ Advisory told the committee in March this year that, based on its financial analysis of the hotel’s viability, occupancy levels, financial performance and other factors, it recommended an investment range of between K115 billion and K145 billion.
The inquiry nevertheless raised concerns about the process leading to the transaction.
It heard that Nico Asset Managers, the fund’s investment manager, withdrew from the proposed deal after raising concerns about technical scrutiny and financial risks.
The committee also heard that the fund’s board initially resolved in January 2024 not to proceed before the transaction was later revived.
The final stages of the transaction were also questioned, with the parliamentary inquiry examining the circumstances surrounding the signing of the sale agreement on November 17, 2025, shortly after regulatory intervention over the proposed acquisition.
The Anti-Corruption Bureau (ACB) separately reopened investigations in March this year into suspected corruption linked to the purchase.
The bureau said the pension fund paid Yusuf Investments K90.125 billion and that K5.497 billion was subsequently withdrawn in cash from a Yusuf Investments account between January 27 and March 6, this year.
According to the ACB, the cash withdrawals raised suspicions of money laundering and corruption, prompting investigators to trace the money trail and profile public officials and other individuals suspected of having benefited corruptly from the transaction.
The investigation involves the Financial Intelligence Authority, the Malawi Police Service’s Fiscal and Fraud Section and international partners.
The ACB’s investigation remains separate from the latest civil proceedings.
In June this year, a magistrate’s court dismissed an application by the bureau to renew restrictions on four bank accounts linked to the hotel, although subsequent legal proceedings saw restrictions imposed again on some of the accounts.
Meanwhile, the fund has already undergone significant regulatory intervention.
In May this year, the Registrar revoked the licences of several trustees after accusing them of failing to comply with an administrative order concerning the Amaryllis transaction.
Chizaso Eric Nyirongo, who chaired the pension fund board when the transaction was undertaken and is among those named in the latest court proceedings, said he did not see the published summons when contacted and therefore could not comment on its contents.
The latest proceedings do not by themselves finally determine whether the Amaryllis acquisition was lawful or whether the transaction will ultimately be reversed.
Those questions will now be addressed through the court process, while the ACB’s criminal investigations and other regulatory and accountability processes continue separately.
For the PSPTF, which manages retirement savings for public servants, the unfolding legal battle will determine the future of the hotel investment and the fate of the billions of kwacha already paid towards its acquisition.
