Embattled Public Service Pension Trust Fund trustees have faulted Reserve Bank of Malawi (RBM) Governor George Partridge for fining them K40 million each without hearing their side in his capacity as registrar of financial services.
In a written response to The Nation questionnaire, the fund’s board chairperson Chizaso Nyirongo accused the registrar of abusing his powers and taking advantage of the absence of the Financial Services Appeals Tribunal, which is responsible for hearing appeals, to “bully” the trustees.
He was responding to remarks by RBM Governor George Partridge who on Tuesday told The Nation that the trustees were yet to pay the fines for failing to submit the sale agreement documentation for Amaryllis Hotel within the required timeframe. Partridge added that the deadline was extended.
But Nyirongo, a lawyer, said it was incorrect that the penalties were due to failure to submit the sale agreement documents on time.
He said: “All trustees lament the fact that, after prolonged silence since January 26 2026, on February 20 2026, the registrar moved to accuse, judge and convict all in one letter.
“All this was done without giving the trustees an opportunity to be heard on the matter, prior to asking them only to mitigate their punishment. The Registrar then went ahead to impose penalties on all trustees without informing us of our right to appeal.”
Nyirongo said all trustees were punished for matters that have left the board ‘embarrassed’ as no actual breaches or their extent were specified.
He further stated that appeals should be made to the Financial Services Appeals Tribunal, which has not yet been constituted and the Registrar knowing that, proceeded to further exercise his powers, knowing they have nowhere to go.
“[This] conduct borders on abuse of power. The trustees will now consider how to proceed, as the Registrar’s actions have shifted from regulation to a form of bullying. Instead of engagement, the registrar prefers to use words like ‘arrogant’ and ‘disobedient,’” he said.
Meanwhile, eight trustees have since appealed the registrar’s decision while four attempted to engage Partridge, according to Nyirongo.
Yesterday, Partridge had not yet responded to our questionnaire by press time.
Private practice lawyer Benedicto Kondowe defended the registrar, stating that under Section 75 of the Financial Services Act (2010), the Registrar has enforcement powers to impose administrative penalties and sanctions for non-compliance with regulatory obligations.
He said these powers are not dependent on prior recourse to the Financial Services Appeals Tribunal.
According to Kondowe, in the absence of the Tribunal, trustees still have the right to approach the High Court for judicial review, challenging the decision on established administrative law grounds such as illegality and procedural unfairness, including the right to be heard.
Parliament’s Public Accounts Committee has since closed its investigation into the Public Service Pension Trust Fund’s acquisition of the hotel.
