Although the Public Accounts Committee (PAC) of Parliament is still investigating the Public Service Pension Trust Fund’s (PSPTF) purchase of Amaryllis Hotel, public sentiment is already tightening the noose around the necks of PSPTF board members and their accomplices.
The core issue is the alleged scandalous misappropriation of public pension funds, where K90 billion was paid upfront out of a controversial K128 billion total price, despite regulatory directives against the deal.
The transaction, which saw the valuation of the property skyrocket from roughly K47 billion to K128 billion in mere months, has left civil servants—the rightful owners of the fund—as the victims. Evidence gathered by PAC suggests the deal was driven by under-the-table arrangements, allowing those involved to walk away with huge, easy profits.
PSPTF, a government agency established in 2017, is tasked with investing retirement funds for civil servants under the regulation of the Registrar of Financial Institutions (RBM Governor). However, when the scandal broke, the Reserve Bank of Malawi (RBM) intervened, ordering the board to rescind the purchase, citing sections 39 and 75 of the Financial Services Act.
RBM demanded justification for ignoring regulatory directives, yet two weeks later, the order remains largely ignored—a “paper tiger.” While the board is presumed innocent until proven guilty, the pressure to act decisively, based on the findings emerging from the PAC meetings, is overwhelming.
But the fact that the sale of the facility took place under the watch of the current administration could become a sticking point in the matter. President Peter Mutharika weighed in on the issue a few days ago. In a statement on his Facebook page, he warned he will shield no one involved in corruption. But short of giving actionable direction on the matter, Mutharika’s detractors feel his statement was too flat, generic and lacking nuance, and at worst just looking like a scarecrow in a cucumber field.
So, kudos to RBM for taking a further step by tracing K72.6 billion connected to the controversial deal, and freezing the accounts holding the money.
Government’s critics feel time for action is now. They ask: ‘What is the administration waiting for when the same has been on a rampage arresting anyone suspected of committing an offence during the previous regime?’ Indeed, how many people has this government arrested before developing a case against them and concluding investigations on their alleged wrong doing?
My take is the only difference is that the people that the Malawi Police Service (MPS) have been arresting committed their alleged crimes during the immediate past administration, while the pension-gate scandal took place under the current regime. The case of khoswe akakhala pa mkhate.
My prayer is that the MPS and other agencies are doing their work on this matter. I, therefore, give them the benefit of the doubt. Hopefully, and sooner, rather than later, they will spring into action and kill the elephant in the room.
As for PAC, under the chairmanship of Steven Malondera, the group has done commendable work in its inquiry into the sale of the hotel. But we should not expect much from them soon. They are still engaging the various stakeholders on the matter. Then they will compile a report and present it to the plenary session of Parliament where it will be scrutinised further. Should Parliament decide that some quarters are culpable, it will then recommend MPS or the Anti-Corruption Bureau or the Financial Intelligence Agency (FIA) to conduct further investigations, before arrests can happen.
So, I guess we are still a long way to go on this issue. And the fact that the deal was done and dusted on the watch of the incumbent administration could be one last hurdle to surmount before anyone can be held accountable.
Suffice to say that PAC has greatly simplified the work of governance institutions such as MPS, ACB and FIA. They know where to start from.
