By Linda Kwanjana
The Human Rights Consultative Committee (HRCC) has come out strongly in defence of National Bank of Malawi (NBM), arguing that the Bank acted within the law in the controversial K5 billion cash withdrawal saga linked to the sale of Amaryllis Hotel.
HRCC chairperson Robert Mkwezalamba said it is misleading to place blame on the Bank when regulatory institutions that were duly informed failed to act.
“National Bank followed procedure. They verified the transactions, confirmed with the account holder, and notified the relevant authorities. At that point, their legal obligation was fulfilled,” said Mkwezalamba.
The K5 billion cash withdrawals, now under parliamentary scrutiny, have raised serious questions about the role of oversight bodies, particularly the Financial Intelligence Authority (FIA), which reportedly received prior alerts on the transactions but did not intervene.
According to information emerging from the probe, NBM officials reportedly contacted FIA ahead of the large cash withdrawals, including the K1.5 billion transactions conducted on two separate occasions in January 2026.
Mkwezalamba stressed that banks are not law enforcement agencies and cannot arbitrarily block legitimate transactions.
“A bank cannot refuse to honour a customer’s cheque without lawful justification. If anything, the law compels them to pay on demand once due diligence is satisfied. The responsibility to investigate suspicious transactions lies with enforcement agencies like FIA,” he said.
The HRCC chairperson further warned against what he described as a growing tendency to scapegoat institutions that operate within the confines of the law while ignoring failures by those mandated to act.
“We must be careful not to criminalise compliance. If the bank alerted authorities and no action was taken, then accountability must start with those who had the power to investigate and intervene,” said Mkwezalamba.
The controversy has been further inflamed by revelations that former FIA Director General Jean Piriminta was dismissed after allegedly leaking CCTV footage of the transactions, which reportedly show high-profile individuals, including State House-linked operatives, involved in the cash withdrawals.
Mkwezalamba said the focus must now shift to institutional accountability and systemic reform.
“This issue is bigger than one bank. It exposes gaps in our financial oversight systems. The question Malawians should be asking is: why were red flags ignored?”
The HRCC has since called for a transparent and impartial investigation into the matter, urging Parliament and relevant agencies to establish the full facts without political interference.
As pressure mounts, the unfolding scandal continues to test the credibility of Malawi’s financial governance systems, with NBM now finding unlikely support from civil society voices insisting the bank may have simply done its job.
