* Five days before the malawi-law-society-petitioned-
* The Board proceeded with the transaction well-knowing that the Fund will be in breach of the prudential limits
* The Registrar of Financial Institutions has since ordered the PSPTF to rescind the sale agreement and censures it for disobeying its direction made in November
By Duncan Mlanjira
In his capacity as the Registrar of Financial Institutions, Reserve Bank of Malawi (RBM) Governor, George Patridge, has written to the Public Service Pension Trust Fund (PSPTF) reminding the Board of Trustees of the communication his office sent on November 14, 2025 “to pend all transactions relating to the acquisition of Amaryliss Hotel until such a time that the direction was either varied or removed”.
Advertisement
Interestingly, this directive came five days before the malawi-law-society-petitioned-
In his letter released today, February 20, 2026, Patridge further reminds the Board of a follow up communication that the Registrar made on December 23, 2025 that directed the Trustees to “make a comprehensive submission providing a clear basis in terms of viability of the proposed investment and how member funds would be safeguarded prior to proceeding with the transaction”.
“We have note with concern that after our direction of 14 November 2025, the Board proceeded with the transaction before the direction was varied or removed,” says the Registrar.
Registrar George Partridge
“Further, we note that the Board proceeded to close the transaction prior to making the comprehensive submission requested in our letter of 23 December 2025.
“Additionally, note, as captured in section 7 of your report, that the Board proceeded with the transaction well-knowing that the Fund will be in breach of the prudential limits as stipulated in the Financial Services (Investment Management of Life Insurers and Pension Funds) Directive, 2025.
“Please take note that in proceeding with the transaction, the Board disobeyed and failed to comply with directions issued by my Office.
“In addition, the Board did this fully aware that the transaction will result in a breach of a financial services law.
“Pursuant to sections 39 and 75 of the Financial Services Act, the Board must submit to my Office within 7 days of this letter reasons why I should not impose administrative penalties on the trustees,” orders the Registrar, while demanding that “the sale agreement be rescinded”.
It seems the Fund’s Board of Trustees seem bent on breaking the law since in on January 6, former-rbm-governor-mafuta-mwale-raised-profound-financial-regulatory-red-flags-on-this-proposed-sale-when he informed the Attorney General, Frank Farouk Mbeta that “proceeding with the transaction would be inconsistent with sound pension fund management principles and expose members to undue financial risk”.
* Weather update
