PAC report confirms ACB acting Director Gabriel Chembezi’s conflict of interest in his involvement in controversial sale of Amaryllis Hotel

* In its final report, adopted on March 31, 2026 but had remained under wraps until now, PAC recommended that Chembezi be temporarily suspended

* And that an independent inquiry be instituted into his conduct, particularly regarding his presence at a meeting in which the sale agreement was discussed in a consultative capacity

* And his subsequent role in overseeing or influencing investigations into the same transaction

By Duncan Mlanjira

During its sessions in the investigation on the controversial sale of Amaryllis Hotel Parliamentary Public Accounts Committee chairperson, Steve Malondera, exonerated Anti-Corruption Bureau (ACB) acting Director Gabriel Chembezi — dismissing speculation that Chembezi had a conflict of interest in the matter.

He had maintained that Chembezi had denied ever having professional dealings with Yousuf Investments, the owners of Amaryllis Hotel; declaring: “At no point in his career has he interacted with or represented Yousuf Investments, and that clarification helped us proceed with the engagement”.

But in its final report, adopted on March 31, 2026 but had remained under wraps until now, PAC recommended that Chembezi be temporarily suspended and that an independent inquiry be instituted into his conduct, particularly regarding his presence at a meeting in which the sale agreement was discussed in a consultative capacity, and his subsequent role in overseeing or influencing investigations into the same transaction.

The Committee also recommended that the inquiry into Chembezi’s role “should determine whether this dual involvement constituted conflict of interest and whether it compromised investigative integrity”.

“Where appropriate, the Committee recommends that disciplinary or legal action be taken, and safeguards strengthened to prevent similar occurrences.”

This is contained in the PAC chairperson Malondera’s report on the recommendations for reform of investigative and oversight institutions, including the ACB, to strengthen their technical capacity to assess complex financial and investment transactions.

“In particular, investigations must extend beyond procedural compliance to interrogate the economic substance and governance integrity of transactions, and should incorporate multidisciplinary expertise, including financial analysts, valuers, and legal experts.”

PAC thus recommended that “clear protocols be established to manage and prevent conflicts of interest within investigative institutions, and that any investigation tainted by such conflict be subjected to independent review”.

PAC also recommended that the Attorney General Frank Farouk Mbeta’s role in commercial and investment-related matters “be clarified to ensure that legal advice does not extend into implicit endorsement of commercial decisions”.

“Accordingly, all advice should be strictly confined to legal interpretation and must be based on complete, accurate, and verified information.

“Any advice issued on the basis of incomplete or inaccurate information should be promptly revisited and corrected,” said the report, which further observed that, in the course of the inquiry, “concerns arose regarding the extent to which certain individuals involved in the investigative and advisory processes were scrutinised.

“In this regard, the Committee notes with concern the apparent lack of clarity surrounding the role of Counsel Frank Mbeta in the investigative process.”

PAC thus recommended that Mbeta’s role “in relation to the investigation and advisory processes, be clearly established and subjected to appropriate extensive investigation”.

And that “where any gaps in accountability or oversight are identified, appropriate measures be taken to ensure that all individuals involved are subjected to equal and transparent scrutiny”.

As regards to specific remedial and accountability measures for key actors in the controversy, PAC recommended some specific remedial and accountability measures on individuals involved that included former Secretary to the President & Cabinet (SPC), Colleen Zamba.

It recommended that Zamba be subjected to an independent and comprehensive investigation to determine:

* whether her actions amounted to abuse of public office;

* constituted unlawful or improper interference in the affairs of the Fund; and

* contributed to the sequence of events that led to the approval of the transaction.

And that such investigation should specifically examine her role:

* in convening and directing the 6 March 2024 meeting;

* her communications with the Principal Officer and other actors;

* her involvement in governance changes affecting the Board of Trustees; and

* the extent to which her actions influenced decisions taken contrary to Board resolutions and professional advice.

“Where evidence of wrongdoing is established, appropriate administrative, civil, and criminal proceedings be instituted in accordance with the law.

The PAC also observed that the presence of Prince Kapondamgaga, in his capacity as Chief of Staff at State Residences, at the meeting of March 6, 2024 concerning the Amaryllis transaction “was irregular and inconsistent with the governance framework of the Public Service Pension Trust Fund”.

PAC noted that the Trust Deed does not assign any role to the OPC or State Residences, in the management or oversight of the Fund’s investment decisions.

“His attendance at a meeting deliberating on a specific commercial transaction involving the Fund, therefore, constituted an unauthorised invasion into the operational independence of the Fund.

“The Committee further finds that, notwithstanding his assertion that he attended as an observer, his presence, given his senior position within the Executive, created a clear perception of executive influence, which had the effect of undermining the independence of the Fund’s decision-making processes.”

PAC thus recommended that Kapondamgaga, in relation to his involvement in the March 6, 2024 meeting “be formally reviewed and investigated to determine whether it amounted to improper interference in the affairs of the Fund”.

“Clear administrative measures be instituted to ensure that public officers do not participate in, or influence, the operations of statutory bodies outside their legal mandate.

Another top official involved in the controversial sale was Chizaso Nyirongo — former OPC Director of Legal Affairs and chairperson of the Fund’s Board of Trustees.

PAC recommended that Nyirongo “be subjected to a comprehensive investigation to determine whether his conduct — both at the OPC and subsequently as chairperson of the Board of Trustees — “constituted abuse of office; conflict of interest; or breach of fiduciary duty”.

PAC further recommended that:

* the current OPC should examine his role in advancing the transaction at OPC level and later presiding over its approval;

* his influence in the appointment of key officers and engagement of advisors; and

* his decision to proceed with the transaction notwithstanding regulatory directives.

PAC further recommended that  “pending the outcome of such investigations, appropriate administrative and legal action be taken, including possible disqualification from holding positions of fiduciary responsibility in public institutions”.

Other officials that PAC recommended action on included Boyd Hamela (the Fund’s then acting Principal Officer), George Jim (suspended Principal Officer), Idrissa Mwale (chairperson of the Investment Committee) and Dr. Maxwell Tsitsi (PS Administration at OPC).

In its conclusions, the PAC report highlighted that the evidence it scrutinises established that the Amaryllis transaction “was not the product of a properly constituted investment process — rather, it was the culmination of a chain of actions in which professional advice was disregarded, governance structures were weakened, legal positions were mischaracterised, and external influence permeated institutional decision-making”.

“The Committee, therefore, concludes that the approval and execution of the transaction represented a serious breach of fiduciary duty and a failure to uphold the principles of prudence, independence, and accountability that are essential in the management of public pension funds.

“This Report is not merely an account of a flawed transaction — it is a reaffirmation of the principle that public resources — particularly those held in trust for the future security of citizens — must be managed with the highest standards of integrity.

“Where those standards are compromised, accountability must follow, not as a matter of discretion, but as a matter of obligation.”

On the recommendations, PAC contended that they are not only intended to address the specific failures identified in the inquiry, “but to restore confidence in the governance of public pension assets and to ensure that such a sequence of events does not recur”.