By Falles Kamanga
BLANTYRE-(MaraviPost)-The Public Service Pension Trust Fund (PSPTF), under the oversight of the governing Democratic Progressive Party (DPP) government, has acquired Amaryllis Hotel for a staggering K147 billion, nearly three times its original valuation of K47 billion, raising serious concerns about the prudence of the transaction with MK90 billion already paid towards the purchase.
The hotel, already struggling and failing to make profits, now sits at the center of controversy over the management of public servants’ retirement savings.
The acquisition received legal approval from Attorney General Frank Farouk Mbeta, who also represents Amaryllis Hotel a glaring conflict of interest critics describe as part of his long history of controversial legal interventions.
In a letter dated 28 December 2025 to the Malawi Law Society, Mbeta presented the findings of investigations into allegations surrounding the sale, stating that independent due diligence by FDH Bank Plc, Continental Asset Management Limited, and EMJ Advisory Public Accountants confirmed the transaction was viable.
He concluded that there was no evidence of corruption, abuse of office, or undue pressure on the Board, though he advised careful risk management.
Earlier, the Anti-Corruption Bureau (ACB) had issued a restriction notice in November 2025, temporarily halting the sale pending investigations.
By 18 December 2025, the ACB issued a letter clearing the transaction, stating that no fraudulent activities were found, effectively lifting the restriction quietly before the end of the year.
However, the Registrar of Financial Institutions at the Reserve Bank of Malawi sent a stern letter on 6 January 2026, warning that the transaction could expose pension fund members to undue financial risk.
The letter cautioned that the purchase could breach investment limits under the Financial Services Directive, cause liquidity mismatches, and increase concentration risk, putting systemically important pension assets in jeopardy.
The Registrar recommended that the Board reconsider the decision or provide clear safeguards for members’ funds.
Adding to the controversy is Frank Mbeta’s legal track record. While he has never been convicted, he has faced multiple allegations, arrests, and injunctions.
In 2015, the ACB sought to arrest him over bribery involving K2 million to an MRA employee, but a court injunction blocked the arrest.
He was also implicated in “judge-shopping” and judicial manipulation (2016–2017), and was mentioned in the Thomson Mpinganjira bribery trial (2019–2020), where testimony suggested he may have been involved in attempts to influence judges.
In February 2026, he further attracted criticism for approving a K51 million payout and a Toyota Fortuner to a politically aligned former Malawi Housing Corporation (MHC) lawyer, fueling accusations of favoritism and misuse of public funds.
Civil society organizations, including the Centre for Democracy and Economic Development Initiatives (CDEDI), have called for Mbeta’s resignation, citing the long-standing “shadow of allegations” undermining public trust.
As the PSPTF moves forward with the hotel acquisition, the clash between Mbeta’s clearance, the ACB’s quiet approval, and the Reserve Bank’s caution leaves Malawians asking whether pension funds are being safeguarded or gambled away for political and personal interests.
