Amaryllis Hotel
* Our projection valued the property at K36.7 billion, significantly lower than the K48.7 billion estimated by the buyer and seller—Continental Asset Management
* Inconsistencies and unacceptable practice have emerged raising questions about the transaction’s integrity—PAC chairperson Steve Malondera
By Patience Longwe, MANA
Continental Asset Management has revealed to the Public Accounts Committee (PAC) of Parliament that the Public Service Pension Trust Fund faces a daunting 36-year wait to recover the K128 billion spent on purchasing Amaryllis Hotel, with profitability only expected after 40 years.
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Speaking during the PAC cluster committee at Parliament yesterday, Continental Asset Management Executive Director, Gillian Kachipondo explained that they were approached in 2024 to provide advice based on valuations conducted by the assessors.
“Our projection valued the property at K36.7 billion, significantly lower than the K48.7 billion estimated by the buyer and seller,” Kachipondo explained to the Parliamentarians.
On his part, PAC chairperson Steve Malondera expressed concern over serious professional and procedural gaps in the deal, saying: “Inconsistencies and unacceptable practice have emerged raising questions about the transaction’s integrity.”
PAC chairperson Malondera flanked by fellow committee members
Malondera, thus stressed on the need for stronger legislation with clear penalties for public officers involved in wrongdoing, adding that Parliament must move beyond mere recommendations and ensure accountability for those responsible.
Also yesterday, PAC also engaged-fdh-bank-over-the-controversial-deal, having also been involved in the transaction and FDH Bank Managing Director, Noel MkulichiFDH Bank recommended that the hotel should be sold at around K30 billion, based on their 2023 assessment, but the hotel was ultimately sold for K128 billion — admitting that “the transaction wasn’t particularly profitable compared to the investment made”.
The PAC chairperson emphasises that the inquiry aims to protect public servants’ interest, ensuring they are not affected by poor investment decisions as they are set to meet other stakeholders involved in the deal to seek clarity on the transaction.—Edited by Maravi Express
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