A controversial property deal in Malawi has sparked public outrage after millions of Dollars in pension funds were used to purchase a hotel at what critics say was a heavily inflated price.
At the centre of the storm is the Public Service Pension Trust Fund (PSPTF)’s acquisition of the Amaryllis Hotel in Blantyre for about $70 million. Independent valuations had placed the property’s worth closer to $25 million, leaving a gap of more than $40 million that has raised alarm over the possible loss of pensioners’ savings.
The deal has shaken confidence among public servants who rely on the fund for retirement, with many questioning how such a transaction was approved.
The controversy comes only months after President Peter Mutharika returned to office, defeating Lazarus Chakwera in last year’s elections. His comeback followed years of political upheaval, including the annulment of his 2019 election victory by the country’s top court.
According to findings cited by the Institute for Security Studies, the PSPTF board had initially rejected the purchase in early 2024 after warnings that the hotel was overpriced. However, the decision was later reversed by a newly appointed board in October 2025, shortly after Mutharika took office.
The situation escalated when the Reserve Bank of Malawi ordered the transaction to be halted in November. Despite this, the purchase agreement was signed days later.
Parliament’s Public Accounts Committee has since investigated the deal, reportedly describing it as more than a poor investment and pointing to what it termed a serious breach of fiduciary duty. The report has been adopted but has yet to be made public.
Authorities have moved to contain the fallout. The Anti-Corruption Bureau has reopened its probe, while financial regulators have frozen significant sums linked to the transaction. Investigators are also examining large cash withdrawals tied to the deal, raising concerns about possible money laundering.
The committee has recommended criminal investigations and the suspension of several senior officials, including scrutiny of the attorney-general and individuals within the Office of the President and Cabinet. It has also flagged a potential conflict of interest involving a senior anti-corruption official.
The case has become politically charged, as the deal began under the previous administration and was finalised under the current one, fuelling blame between rival camps.
–ChannelAfrica–
