By Isaac Salima:
In a turn of events over the controversy-ridden sale of Amaryllis Hotel in Blantyre, the Reserve Bank of Malawi has ordered the Public Service Pension Trust Fund (PSPTF) to withdraw its purchase agreement with the property owner, Yusuf Investments Limited.
The deal has hogged the limelight over the past few days.
In a statement signed by RBM Governor and Registrar of Financial Institutions, George Partridge, the Central Bank has faulted PSPTF Board of Trustees for proceeding with the transaction despite being advised against the deal.
According to the statement, on November 14, 2025, RBM guided the Board of Trustees of the PSPTF to shelve all transactions relating to the acquisition of the Amaryllis Hotel until such a time that the direction would be either changed or withdrawn.
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In addition, on December 23, 2025, the Central Bank also directed the board to file full details justifying the viability of the proposed purchase and how the investment would ensure the security of the funds of its members before processing the deal.
“We have noted with concern that after our direction of 14 November 2025, the Board proceeded with the transaction before the direction was varied or removed.
“Further, we note that the Board proceeded to close the transaction prior to making the comprehensive submission requested in our letter of 23 December 2025,” reads the statements.
RBM has taken the issue with how the board has pushed on with the sale in disobedience of its guidance.
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“In addition, the board did this fully aware that the transaction will result in a breach of a financial services law,” the letter read.
The Reserve Bank has since demanded the withdrawal of the purchase agreement.
It has further directed PSPTF’s board to submit within seven days reasons why it should not impose penalties on the trustees.
In a January 2026 letter, the then RBM Governor Macdonald also advised the Attorney General against proceeding with the deal.
“My assessment is that proceeding with the transaction would be inconsistent with sound pension fund management principles and expose members to undue financial risk.
“From a prudential and regulatory perspective, the proposed transaction is likely to breach investment limits under the Financial Services,” reads the letter.
The deal has attracted widespread public opinion.
Advocacy groups such as the National Advocacy Platform and the National Anti-Corruption Alliance are among those that have raised a voice of protest against the transaction.
In a letter dated February 19, 2026 the two bodies called on the Public Accounts Committee of Parliament to investigate the deal.
According to the letter, when the two parties signed a purchase agreement in November 2025, the cost was pegged at K128.75 billion.
Now it is put at K147 billion.
They further say in June 2023, the hotel was valued at between K47 billion and K48 billion.
This variation of figures, they say, raises questions about the valuation of the property.
They therefore call for an investigation of the agreement.
“The retirement security of Malawian public servants must not be subordinated to opaque investment decisions whose prudence remains seriously contested,” reads the letter.
In December last year, the Malawi Law Society also raised concerns through the Attorney General over suspected corruption in the deal by the PSPTF Board of Trustees.
Attorney General Frank Mbeta, in his response to the society’s concerns, said the Anti-Corruption Bureau (ACB) had conducted its investigations on the matter and cleared the board.
“The ACB did not find sufficient evidence to sustain charges of corrupt practices or abuse of office by the public officers involved in the transaction,” Mbeta said in the letter.
PSPTF is an autonomous contributory pension scheme for public servants.
It was established under the Pensions Act to provide retirement and pension benefits to public servants who have attained mandatory retirement age.
It is managed by an independent Board of Trustees.
It started its operations in July 2017.
It was licensed in July 2018 by the Reserve Bank of Malawi in its capacity as Registrar of Financial Institutions
