‘SPC Colleen Zamba had no authority under the pension fund’s trust deed to chair meetings concerning purchase of Amaryllis Hotel’

Attorney General Frank Mbeta 

* The trust deed clearly states that the trustee is the final decision-maker, not someone outside that structure—Attorney General

* His testimony supports claims by suspended PSPTF Principal Officer, George Jim, who who alleged that he faced pressure from Zamba to expedite the K128.7 billion transaction during the previous administration

By Patience Longwe & Innocent Manda, MANA

Attorney General (AG), Frank Mbeta has emphasised that former Secretary to the President & Cabinet (SPC), Colleen Zamba, had no authority under the trust deed of the Public Service Pension Trust Fund (PSPTF) to chair meetings concerning the purchase of Amaryllis Hotel.

“The trust deed clearly states that the trustee is the final decision-maker, not someone outside that structure,” he told the Parliamentary Public Accounts Committee (PAC) that opened the inquiry into the controversial Amaryllis Hotel purchase.

Mbeta’s testimony supports claims by suspended PSPTF principal officer, George Jim, who alleged that he faced pressure from Zamba to expedite the K128.7 billion transaction during the previous administration.

Mbeta also dismissed media reports claiming he authorised or endorsed the K128.7 billion purchase, telling PAC that his legal advice was conditional and has been misrepresented.

“I advised the board to review the risks and ensure compliance with prudent investment principles and regulatory requirements before proceeding with the transaction,” he said.

Mbeta emphasised that the final decision rested with the PSPTF Board of Trustees, which has absolute discretion under the Trust Deed and pension laws.

“My role is to ensure compliance with legal and regulatory requirements; commercial decisions fall outside my mandate,” he added.

When it was asked why he indicated in his report that the PSPTF Board never passed a resolution to halt the purchase of Amaryllis Hotel, Mbeta said he made that conclusion based on the information from the Board itself that informed him there was no such decision made at their meetings.

He maintained that to his knowledge, as informed by the Board, there was no resolution by the board in January 2024 to stop the transaction, saying: “My office only stepped in after the Malawi Law Society raised concerns about the deal in November 2025.”

Mbeta emphasised that the board has the mandate to make commercial decisions, while his office’s role is limited to ensuring legal compliance and that the decision to invest in the hotel was an administrative and commercial matter, entirely at the discretion of the trustees, who are responsible for assessing the viability and pricing of such investments.

The AG said his office’s involvement in the transaction was reactive rather than proactive, following the formal complaint from the Malawi Law Society in November 2025, which raised concerns over governance and potential corruption.

Mbeta has also said his office wrote the Anti-Corruption Bureau (ACB) directing it to issue a restriction notice to halt the transaction temporarily, describing the move as a precautionary measure to preserve public assets while investigations were underway.

The AG further indicated that his conclusions were informed by investigative reports from both the ACB and the Reserve Bank of Malawi (RBM), which examined corruption allegations and broader prudential concerns surrounding the transaction.

According to the AG, his legal guidance equired the PSPTF to conduct a comprehensive risk assessment, particularly addressing concerns raised by the RBM regarding disputed financial receipts linked to the deal.

The AG has clarified that the directive to proceed with the transaction was permissive and dependent on trustees first resolving all prudential and regulatory issues, ensuring compliance before making any binding financial commitments — and that the trustees retained full discretionary authority under the trust deed but were obligated to act in the best interest of the fund and its members in line with fiduciary principles.

Mbeta further noted that his position aligned with the Registrar of Financial Institutions, who advised against proceeding until all prudential concerns were addressed, reinforcing that his guidance was strictly process-oriented, not commercial endorsement.

Meanwhile, the suspended PSPTF principal officer, George Jim, denied receiving pressure from the current ruling government over the purchase of the hotel, emphasising that the only pressure he experienced came from former SPC, Colleen Zamba, during the previous administration under the Malawi Congress Party (MCP).

“During the MCP administration, I was receiving pressure from the former SPC, but under the current ruling government, no one pushed for the speedy completion of the hotel purchase,” he said.

PAC Chairperson, Steve Baba Malondera, said the committee is still examining the circumstances surrounding the transaction and will call more witnesses to provide further insight.

PAC is investigating the purchase of the Amaryllis Hotel by the Public Service Pension Trust Fund at a cost of K128.7 billion, a figure that has sparked debate due to a significant increase from an initial market valuation of K47 billion by Knight Frank in July 2023.—Edited by Duncan Mlanjira, Maravi Express