Members of the Board of the Public Service Pension Trust Fund (PSPTF) have been hit with a K40 million fine each by the Reserve Bank of Malawi (RBM) for defying regulatory directives in the controversial purchase of Amaryllis Hotel.
The penalty, which must be paid within ten days, was imposed after the board allegedly ignored multiple warnings from the central bank to halt the transaction.
Appearing before Parliament’s Public Accounts Committee (PAC), RBM official Kaluso Chihana revealed that the PSPTF board pushed ahead with the deal despite clear instructions to stop, citing advice they had received from EMJ Advisory.
Chihana said the board was repeatedly cautioned against proceeding with the acquisition unless they could provide solid justification, but chose to press on—an action he described as outright defiance of the regulator.
“The Reserve Bank gave them several opportunities to comply, but they continued regardless. This is a serious breach, and the penalty was necessary,” he told the committee.
He further disclosed that the RBM ordered the board to reverse the transaction within seven days, raising further questions about the legality and due diligence surrounding the deal.
Meanwhile, financial investigations have traced approximately K72.6 billion linked to the transaction into various accounts. Authorities have since moved to secure a large portion of the funds, restricting access to prevent withdrawals.
The Amaryllis Hotel deal has sparked widespread public concern, with critics questioning how such a massive transaction could proceed in the face of regulatory resistance.
As pressure mounts, all eyes are now on whether the PSPTF board will comply with the RBM’s directives—or face even tougher consequences.
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