By Durell Namasani
Prominent legal commentator Alexious Kamangila has issued a stinging assessment of the Amaryllis Hotel controversy, claiming that in any serious nation, the scandal would have triggered the resignation of the Minister of Finance, the Reserve Bank Governor, and the Attorney General. Kamangila’s remarks come as regulatory breaches, valuation irregularities, and governance failures continue to engulf the K128.75 billion purchase of the luxury hotel by the Public Service Pension Trust Fund (PSPTF) .
Kamangila has further appealed to Reserve Bank Governor Dr George Partridge to urgently audit the PSPTF, warning that the matter demands immediate attention. His comments reflect growing frustration among civil society and public servants that those responsible for overseeing the transaction have not faced consequences .
The controversy centres on the PSPTF’s acquisition of the Amaryllis Hotel in Blantyre at a price nearly three times its reported valuation of K47 billion just two years earlier . The deal was concluded in November 2025 despite regulatory directives to suspend it, prompting the Registrar of Financial Institutions to order trustees to reverse the transaction within seven days or face administrative penalties .
According to the Registrar’s hard-hitting letter dated February 20, 2026, the PSPTF board proceeded “well-knowing that the Fund will be in breach of prudential limits” under the Financial Services Directive of 2025 . The regulator also revealed that a direction issued on November 14, 2025 ordering trustees to suspend all dealings relating to the hotel was never lifted, yet the board moved ahead and closed the deal . On December 23, 2025, trustees were instructed to submit a comprehensive report detailing the investment’s viability and how members’ pension funds would be safeguarded, but they concluded the deal before providing the requested submission .
Attorney General Frank Mbeta has firmly denied authorising the purchase, insisting that his legal opinion solely advised trustees to remain compliant with regulatory requirements, leaving the final investment decision to the pension fund board . Mbeta revealed that after receiving complaints from the Malawi Law Society, his office took proactive steps to ensure the matter was investigated by the Anti-Corruption Bureau .
However, the Malawi Law Society has sharply criticised the ACB’s handling of the probe. The legal body described Acting Director General Gabriel Chembezi’s decision to clear officials linked to the deal as raising “serious questions about the credibility, independence, and integrity of the bureau’s so-called investigation” . The Society added that the clearance “casts a dark shadow over the entire probe and fuels public suspicion that the investigation may have been rushed, compromised, or simply inadequate” .
The Centre for Democracy and Economic Development Initiatives (CDEDI) has demanded that the Office of the Ombudsman conduct a full public inquiry into the transaction, arguing that the ongoing forensic audit into PSPTF’s operations must not remain a closed internal process . CDEDI Executive Director Sylvester Namiwa insisted that “those implicated should be personally held liable” .
The Secondary School Teachers Union (SESTU) has demanded the resignation of the PSPTF Board of Trustees within three weeks, stating that “the circumstances surrounding this transaction have significantly undermined our confidence in the board’s stewardship of our funds” . SESTU General Secretary Frank Druwen Moyo warned that failure to comply would leave the union with no choice but to pursue further action, adding that “any consequences arising therefrom shall rest solely with the board” .
Teachers contribute five percent of their salaries to the pension fund, with government adding ten percent, on the legitimate expectation that their retirement benefits will be prudently invested . SESTU has expressed particular concern about the rapid escalation of the purchase price “without transparent justification” and the alleged conflict of interest involving legal counsel representing Amaryllis Hotel who reportedly serves as a Director of the ACB .
The Reserve Bank has warned that the proposed purchase exceeds investment limits and creates serious liquidity mismatches and concentration risks . As the third-largest pension fund in the country, any instability within PSPTF could have far-reaching consequences not only for individual retirees but for the stability of the pension sector as a whole .
Kamangila’s assertion that senior government officials should have resigned reflects a broader sentiment among Malawians that accountability remains optional. The Malawi Law Society has demanded that trustees, officers of the fund, and the Attorney General provide full information to the public regarding the exact status of the transaction, including any money already paid, complete due diligence reports, and the specific advice received from the Reserve Bank .
For thousands of public servants whose retirement savings hang in the balance, Kamangila’s words resonate deeply: in a serious country, this scandal would have already claimed scalps. Instead, as regulators issue directives and civil society demands action, the question remains whether those responsible will finally be held to account.
