LILONGWE-(MaraviPost)-The Public Accounts Committee (PAC) of Parliament on Wednesday exposed incompetence on EMJ Advisory Public Accountants concerning their role in the acquisition of Amaryllis Hotel by the Public Service Pension Trust Fund, a deal estimated at about MK128 billion.
During interrogation, it was discovered that EMJ was unregistered firm and failed to give full details on how it recruited for evaluation of the hotel for purchase.
The engagement is part of Parliament of Malawi’s ongoing oversight inquiry aimed at establishing the procedures and due diligence undertaken by the Public Service Pension Trust Fund in the acquisition of Amaryllis Hotel.
According to Co-Director of EMJ, Emmanuel Chisale, the firm was engaged to conduct desk research and provide recommendations to the pension fund within a 14-day timeframe after being contacted by trustees from the procurement section.
“We first received a phone call and later an email requesting us to submit both a technical and financial proposal. We conducted a desk research and submitted our report within the required timeframe, and the consultancy contract was valued at MK26 million,” said Chisale.
During the interrogation, the director admitted that EMJ is not a registered valuer, despite the firm being entrusted to participate in the billion-kwacha project.
Chairperson for the Parliamentary Public Accounts Committee, Steve Baba Malondela, said the interrogation forms part of Parliament’s broader inquiry aimed at understanding the processes that led to the proposed purchase of the hotel.
“We are currently gathering information from all stakeholders who were involved in this transaction. Once we have all the necessary information, the committee will compile a report which will be presented to Malawians,” said Malondela.
Malondela added that the interrogation is part of Parliament’s efforts to establish how the Public Service Pension Trust Fund initiated and processed the acquisition of the hotel, as the committee continues engaging various stakeholders connected to the transaction.
“As a parliamentary committee, one of our roles is oversight, and if we want Malawi to sustain itself, we have to do this.
If we don’t do it, then who will?” said Steve Malondela.
The Public Accounts Committee has so far managed to engage FDH Bank, EMJ Advisory Public Accountants, Continental Asset Management Limited, and Malawi Law Society.