Parliament’s Public Accounts Committee (PAC) yesterday learnt that the Reserve Bank of Malawi (RBM) has traced about K72.6 billion connected to the controversial K128.75 billion Amaryllis Hotel deal and has since frozen bank accounts.
Briefing PAC in the ongoing public inquiry into the purchase of the Blantyre-based five-star hotel by the Public Service Pension Trust Fund (PSPTF) in Lilongwe yesterday, RBM Governor George Partridge, wearing the hat of registrar of financial institutions, said trustees of the fund acted with “disobedience bordering on arrogance” by proceeding with the acquisition despite clear regulatory orders to stop the process.
He said the central bank has engaged the Financial Intelligence Authority (FIA) to “follow the money” and investigate possible financial crimes connected to the deal.
In the meantime, Partridge said National Bank of Malawi Plc and CDH Investment Bank have been directed to reverse the transactions, regard the loans as unpaid and quarantine the proceeds until conclusion of investigations.
He further told the committee that the regulator has escalated action against the fund’s trustees for defying a November 2025 directive to halt the transaction.
Partridge also questioned the due diligence on the transaction, saying the investment appeared to rely on advice from a firm that “only spent one day” on the deal.
In a separate submission, RBM director of pension and insurance supervision Kaluso Chihana said letters were issued on February 27 2026 to the FIA and commercial banks to trace and freeze accounts linked to the investment.
He confirmed that about K72.6 billion has so far been tracked.
Chihana said the registrar imposed administrative penalties on March 4 under Section 135 of the Pension Act after trustees failed to comply with regulatory directives, including submitting sale agreement documentation within prescribed timelines.
“When the board met on November 19, we were shocked to learn the sale agreement had already been signed. Some trustees were not even aware of the signing,” he said.
Meanwhile, PAC chairperson Steven Malondera has since directed the registrar to engage an audit firm to conduct lifestyle audits on individuals suspected of involvement in the deal.
In a related development, the fund’s acting principal officer Boyd Hamella yesterday contradicted the submission by Nico Asset Managers Limited chief executive officer Daniel Dunga last week on how the investment advisory firm withdrew from the Amaryllis Hotel deal.
Hamella told PAC that Dunga’s claim that Nico Asset Managers walked away due to investment risks was false.
He wondered why Nico Asset Managers, which was engaged by the fund to conduct investment analysis, failed to carry out due diligence.
Responding to a question from Malondera during the inquiry, Hamella said Nico Asset Managers had its own interests in a competing hotel development at Lilongwe Golf Club, creating what he described as a potential conflict of interest.
He said clause nine of their agreement prohibited any shareholder from investing more than 30 percent in similar hospitality ventures.
In his submission last week, Dunga said Nico Asset Managers warned the fund that acquiring 100 percent of Amaryllis Hotel posed significant financial risks.
He said his firm’s analysis raised concerns about liquidity risk—the ability to convert the investment into cash quickly should the need arise to meet pension obligations.
Dunga told the committee that at the time of assessment, the hotel was valued between K47 billion and K48.7 billion as of March 2023.
He said Nico Asset Managers proposed acquisition of a minority stake of at least 45 percent while an experienced hotel management company handled daily operations.
The fund’s former board chairperson James Kumwenda also told PAC that his board had chosen to withdraw from the investment after professional advisers cited financial risks.
However, in his testimony, incumbent board chairperson Chizaso Nyirongo insisted that the board had provided detailed information about the transaction and explained decision-making processes, emphasising they were clarifying facts rather than defending the purchase.
Earlier testimony before the committee revealed that FDH Bank plc valued the hotel at about K30 billion in 2023 while Continental Assets Management Limited pegged it at K36.7 billion in 2024.
The committee is also scheduled to interview other stakeholders, including Attorney General Frank Mbeta, Secretary to the Treasury, FIA officials, former Secretary to the President and Cabinet Colleen Zamba and former State House chief of staff Prince Kapondamgaga.
