By Isaac Salima:
A leaked report by the Public Accounts Committee of Parliament into the purchase of Amaryllis Hotel by the Public Service Pension Trust Fund has faulted several government officials, former and current, for departing from the principles governing the management of public pension assets.
The report has not yet been formally released, as Parliament has indicated that the probe will continue.
The 294-page report in circulation found that governance failures and a breakdown in fiduciary discipline facilitated the transaction.
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The committee mentions several key figures whose actions are under scrutiny, including former Secretary to the President and Cabinet Colleen Zamba, former Chief of Staff Prince Kapondamgaga, acting Principal Officer of the Public Service Pension Trust Fund Boyd Hamela and Attorney General Frank Mbeta.
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The report says the committee found that Zamba played a central role in the progression of the Amaryllis transaction.
“It was under her authority that the meeting of March 6, 2024 was convened, through which the issue was elevated from an internal investment matter to one of concern at the highest level of government.
“The committee found that the framing of the transaction during this meeting, particularly the emphasis on legal and reputational implications, set the tone for subsequent developments,” the report reads.
On Kapondamgaga, the report says the committee found that he had influence on the deal, despite insisting that he had only attended a meeting as an observer.
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“While he acknowledged discussion of possible legal action against the government, he declined to answer further questions. The committee found that his presence introduced institutional weight that altered the tone and significance of the meeting,” it says.
The report also found that the conduct of Hamela, both before and during his tenure as acting Principal Officer, advanced the transaction in a manner inconsistent with sound governance.
On the committee’s interview with Mbeta, the report says that while his advice was presented as conditional and limited to legal matters, it was based on incomplete information and relied upon in circumstances where governance, procedural and investment concerns had not been fully examined.
“On pricing, the Attorney General conceded that the increase from about K30 billion to K128.7 billion was concerning, but maintained that valuation was a matter for experts and that responsibility rested with the trustees,” it says.
The report also says ACB’s evidence reflected an investigation that initially reached conclusions without critical information but was later reconsidered in light of new material.
It also faults oversight institutions for failing to meet the required standards.
The committee had been scheduled to present the report on Wednesday but postponed this as it awaits further interrogations.
It has faced criticism for planning to present the report before interviewing key stakeholders such as Zamba, who is reportedly outside the country.
The inquiry began after concerns were raised about how the deal was conducted.
The facility was valued at about K47 billion in 2024, raising questions over the increase to K128.75 billion.
