By Edwin Mauluka

Malawi’s Attorney General, Frank Mbeta, has revealed that the Office of the President and Cabinet (OPC), under former Secretary to the President and Cabinet Colleen Zamba, pushed the Public Service Pensions Trust Fund (PSPTF) to fast-track the controversial purchase of the Amaryllis Hotel despite unresolved prudential risks.

Appearing before Parliament’s Public Accounts Committee (PAC), Mbeta said his office had cautioned the PSPTF to address concerns raised by the Anti-Corruption Bureau (ACB) and the Reserve Bank of Malawi (RBM) before proceeding with the MWK128 billion transaction.

“We issued a conditional legal opinion, clearly advising the Fund to first resolve the prudential risks identified,” Mbeta said. “We did not authorise the transaction.”

Mbeta, however, pointed to high-level pressure from OPC to conclude the deal within tight timelines.

Citing minutes from a March 6, 2024 meeting in Mzuzu — sanctioned by Zamba — he said the fund was instructed to expedite the purchase before the end of that month.

“The fund was advised to move with speed in concluding the transaction,” Mbeta told the committee.

According to the minutes, the PSPTF was directed to:

Submit action plans by March 8, 2024

Issue comfort letters to avert potential lawsuits from the seller

Provide weekly progress reports to OPC

The meeting was attended by senior officials, including Prince Kapondamgaga, Chizaso Nyirongo, Boyd Hamela and George Jim.

Mbeta said OPC also directed the fund to engage another investment manager for the hotel project within days.

The AG’s testimony draws a contrast between legal caution and administrative urgency surrounding the deal.

He said his advice was based on reports from the ACB and RBM, which did not find evidence of corruption but flagged significant prudential risks.

“While the ACB indicated the issues were outside its mandate, the same concerns were clearly raised in the Reserve Bank report,” he said.

He added that he reiterated this position in correspondence with the Malawi Law Society, urging the fund to reassess the risks before proceeding.

On claims that a previous PSPTF board had resolved on January 7, 2024, not to proceed with the deal, Mbeta said there was no evidence to support that position at the time he issued his legal opinion.

He said both the board and available reports did not reference such a resolution.

“Based on the facts presented, there was no evidence suggesting that such a resolution existed,” he said, adding that he could not verify documents circulating on social media.

Mbeta also distanced his office from the sharp escalation in the hotel’s price—from about MWK47 billion to MWK128 billion—saying such matters fall outside the Attorney General’s mandate.

“Our role is to ensure legal compliance, not to determine pricing or assess commercial viability,” he said.

He noted that viability assessments were conducted by FDH Bank (2023), Continental Asset Management (May 2024) and EMJ Advisory (November 2025).

“The decision to invest is purely commercial. The law only ensures that due process is followed,” Mbeta said.

Mbeta maintained that his office acted diligently, including initiating anti-corruption processes and issuing conditional guidance.

“We facilitated a lawful process. The responsibility to act prudently remained with the board,” he said.

He also said he had not encountered any records linking his office to the PSPTF’s earlier purchase of the Sigerege Hotel, now Lifestyle Boutique.

Mbeta’s appearance follows two earlier missed sessions before PAC, which had heightened attention on the inquiry into one of Malawi’s most controversial public investment decisions.

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Also Read: PAC hears Zamba fingered in ‘forced’ fast-tracking of Amaryllis Hotel purchase