By Our Reporter
Embattled trustees of the Public Service Pension Trust Fund have faulted George Partridge, Governor of the Reserve Bank of Malawi (RBM), for imposing K40 million fines on each trustee without granting them an opportunity to be heard.
Board chairperson Chizaso Nyirongo described the decision—made in Partridge’s capacity as Registrar of Financial Services—as an abuse of authority. He argued that the penalties were issued without due process and took advantage of the absence of the Financial Services Appeals Tribunal, which is mandated to hear such disputes.
Nyirongo said the trustees were taken aback by the registrar’s actions, claiming they were “accused, judged and convicted” in a single communication dated February 20, 2026, following what he described as prolonged silence since late January.
“All this was done without giving the trustees an opportunity to be heard on the matter,” he said, adding that they were only invited to mitigate punishment after the decision had already been made.
The RBM Governor had earlier told The Nation that the fines stemmed from the trustees’ failure to submit sale agreement documentation for the Amaryllis Hotel within the stipulated timeframe, despite an extension being granted.
However, Nyirongo disputed this explanation, insisting the penalties were not based on delayed submission of documents. He further argued that the trustees were not informed of any specific breaches or the extent of alleged wrongdoing, leaving the board “embarrassed” and unclear on the basis of the sanctions.
He also raised concern over the lack of a functioning appeals mechanism, noting that while appeals should ordinarily be directed to the Financial Services Appeals Tribunal, the body has not yet been constituted.
“Knowing that the tribunal is not in place, the registrar proceeded to exercise his powers, fully aware that the trustees have nowhere to seek redress,” Nyirongo said, accusing the regulator of shifting from oversight to intimidation.
According to him, eight trustees have since filed appeals against the decision, while four have sought direct engagement with Partridge in an attempt to resolve the matter.
But legal opinion appears divided.
Private practice lawyer Benedicto Kondowe defended the registrar’s actions, citing Section 75 of the Financial Services Act (2010), which grants the Registrar authority to impose administrative penalties for regulatory non-compliance.
Kondowe argued that these enforcement powers do not depend on the existence of the tribunal. He added that, in its absence, affected parties still retain the right to challenge decisions through judicial review in the High Court on grounds such as procedural unfairness or illegality.
Meanwhile, Parliament’s Public Accounts Committee has closed its investigation into the pension fund’s controversial acquisition of the hotel, bringing a key chapter of the matter to a close—though tensions between the trustees and the regulator remain unresolved.
As of press time, Partridge had not responded to further queries.
