PSPTF Board chairperson confirms MLS’ revelation that former SPC Colleen Zamba influenced purchase of Amaryliss Hotel

* Despite the Board’s recommendation that it should not proceed with the investment and resolved to abandon the deal

* As Parliamentary Public Accounts Committee PAC engages the PSPTF former board members as it continues interrogating key stakeholders over the controversial K128 billion purchase of Amaryllis Hotel

* Meanwhile, President Arthur Peter Mutharika pledges his full support of PAC investigation and pledged that he will not shield anyone involved in corruption

* He reiterated his administration’s commitment to transparency, accountability, and the rule of law in the ongoing PAC inquiry

Maravi Express

Former Public Service Pension Trust Fund (PSPTF) board chairperson, James Daire Kumwenda, has confirmed what Malawi Law Society (MLS) revealed to the Parliamentary Public Accounts Committee (PAC) that former-secretary-to-the-President-and-cabinet-coleen-zamba influenced purchase of Amaryliss Hotel.

When Kumwenda appeared before the PAC meeting yesterday, he indicated that during an extraordinary meeting held on January 17, 2024, the board recommended that it should not proceed with the investment and resolved to abandon the deal.

All seven former trustees present, representing both the employer and employee sides, confirmed before the committee that the board had resolved not to proceed with the proposed purchase of Amaryllis Hotel.

Kumwenda further confirmed that during its 23rd meeting on March 13-15, 2024, the Board was informed that the PSPTF had been summoned by the Office of the President & Cabinet (OPC), particularly the office of the Secretary to the President and Cabinet (SPC), directing the fund to proceed with the purchase of the hotel, warning that the seller could sue the fund.

The first time the Board discussed the proposed to purchase of the hotel was during a meeting held on August 30-September 1, 2023 in which the investment subcommittee had earlier indicated the need to interact with NICO Asset Managers for valuations before further deliberations.

And at another board meeting held on November 27–28, 2023, Kumwenda said the investment subcommittee reported that the land and infrastructure for the hotel were valued at K47 billion.

But following the devaluation of the Kwacha, the seller, Yusuf Investment Limited, proposed an adjustment of the offer price to K61.1 billion, but the Board, according to Kumwenda, rejected the proposal, maintaining that the price should not be increased.

According to a document prepared by market asset valuers, Knight Frank, which Maravi Express has in possession, in its valuation dated July 13,2023 Amaryliss Hotel’s market value was pegged at K50.5 billion and a gross replacement cost of K87.81 billion.

Current PSPTF chairperson, Chizaso Eric Nyirongo, told PAC that payment authorisation for the K128.7 billion deal was supposed to come  from the Fund’s principal officer, but he could not confirm when the payment was made to Yusuf Investment Limited.

Nyirongo admitted he and the investment committee chairperson signed the sale agreement, claiming it followed a Board resolution and he also revealed that Nico Assets Managers, as the PSPTF fund manager, was not involved in the payment process but Old Mutual and Continental Asset Managers were.

The PAC heard that the Board is seeking ways to safeguard the Fund’s resources and after identifying “lapses in the system, only 3 of 10 trustees”, who appeared before the committee had seen the signed sale agreement.

During her turn, Investment Manager Charity Mphatso Gambatula Phiri confirmed that in September 2023, the management agreed to proceed with the purchase of the hotel, Yusuf Investment Limited, through their legal adviser, later communicated that they had decided to adjust the price by 30% of which the Trust declined and formally notified them that it was withdrawing from the deal.

The Investment Manager indicated that as of January 2025, the PSPTF value stood at K999 billion, saying only about 12% was intended to be used to purchase the hotel.

Procurement & disposal officer, Taniel Mtambo told PAC that the procurement unit received an approved request from the PSPTF planning & investment division to procure consultancy services to conduct an independent investment analysis for the Amaryllis Hotel transaction.

Mtambo said the request was approved by the acting principal officer and was classified as urgent. Following the approval, the procurement unit prepared bid solicitation documents and identified potential consultants from the Public Procurement and Disposal supplier database to participate in the bidding process.

The procurement officer further explained that two firms responded to the solicitation; KCM Consulting and EMJ Advisory Public Accountants, and during the bid opening, KCM Consulting quoted K30.9 million, while EMJ Advisory Public Accountants quoted K26.98 million.

He added that no bidders or their representatives were present during the bid opening exercise. An adhoc evaluation team was later constituted and conducted the evaluation on November 7, 2025 at the PSPTF offices, which included officers from human resources, finance, benefits administration, and procurement.

Mtambo also told the committee that the evaluation report recommended awarding the contract to EMJ Advisory Public Accountants as the lowest bidder, and the report was subsequently presented to the Internal Procurement and Disposal Committee on November 10, 2025, which approved the recommendation.

Mtambo further said the successful bidder was invited for contract negotiations held at the PSPTF offices on November 12, 2025, attended by officials from the PSPTF and representatives from EMJ Advisory Public Accountants, after which minutes of the negotiations were prepared.

Trustee Benard Nyondo, representing teachers under the Teachers Union of Malawi,  told PAC that the Board initially resolved that the investment committee should only assess the business viability of the Amaryllis Hotel before any final decision could be made.

Nyondo said he attended the October 25, 2025 board meeting virtually, where Trustees agreed that the investment committee should evaluate the commercial viability of the hotel and later report back to the board for a final resolution on the proposed transaction.

Further, Nyondo clarified before the committee that he never supported pursuing the purchase of the hotel, stressing that he remained consistent in representing the interests of the teachers on the board.

According to Nyondo, he raised concerns during the meeting that any resolution regarding the transaction should first be shared with the Board in writing before being communicated to the hotel’s sellers, arguing that proper governance procedures needed to be followed.

The trustee further told PAC that he later wrote an email to the entire board in November 2025 highlighting governance concerns, including the handling of the hotel transaction, the suspension of the fund’s principal officer George Jim and the restructuring of board committees, which he said required clearer communication and formal resolutions.

Another Trustee, Arthur Manyunya told PAC that he was not aware that a contract for the purchase of the Amaryllis Hotel had already been signed and only learnt that the agreement had been executed on November 17, 2025, two days before a board meeting held in Salima where it was cornfirmed — attended by the Reserve Bank of Malawi (RBM) as the Registrar of Financial Institutions.

Hee told PAC that the development came as a surprise because the investment committee, which usually handles such matters under delegated authority, had not reported back to the Board for discussion and resolution before the agreement was signed.

Manyunya further explained that he was later moved from the investment committee to the human resources, governance and legal committees after the board chairperson restructured the committees in November 2025.

The trustee also told PAC that in February this year the RBM) issued a notice indicating that trustees could face administrative penalties and asked them to explain within seven days why such penalties should not be imposed.

According to Manyunya, he subsequently wrote to the Board leadership seeking clarification on several issues regarding the transaction, including the status of the deal, whether any payments had been made, the source of funds and the legal obligations of the pension fund.

Manyunya said without such information, he could not meaningfully respond to the regulator’s concerns or contribute to a coordinated response on the transaction.

PAC was engaging the PSPTF former board members as it continues interrogating key stakeholders over the controversial K128 billion purchase of Amaryllis Hotel and all who appeared took an oath before presenting their submissions and evidence.

Meanwhile, President Arthur Peter Mutharika, has reiterated his administration’s commitment to transparency, accountability, and the rule of law in the ongoing PAC inquiry into matters surrounding the procurement of Amaryllis Hotel.

A press statement released today, the inquiry taking place is proof of the government’s resolve to allow oversight institutions to work without interference.

The President further reaffirmed his government’s stance in the fight against corruption, saying public office is a sacred trust bestowed by the people of Malawi and that any misuse of public resources or influence for personal gain is a serious betrayal of that trust.

Mutharika thus assured the Public Accounts Committee of his full support and pledged that he will not shield anyone involved in corruption.—Reported by Innocent Manda, Patience Longwe & Pickson Chipeso, Malawi News Agency (MANA) from Parliament; edited by Duncan Mlanjira, Maravi Express