LILONGWE-(MaraviPost)-Chief Resident Magistrate Austin Banda has granted economist and political consultant Collins Magalasi bail in a MK3.5 billion case linked to the controversial Public Service Pension Trust Fund’s purchase of Amaryllis Hotel in Blantyre.
Initially, the State opposed the bail application, arguing that Magalasi is a flight risk and should remain in custody.
However, the court has today rejected the argument, saying the State has not provided sufficient evidence to demonstrate that Magalasi is likely to abscond.
Magalasi’s lawyer, Andy Kaonga, told the court that there is no evidence to support the State’s claim that his client is a flight risk.
“Was he arrested outside the country? No, he was not,” said Kaonga.
Banda has granted Magalasi bail on condition that he pays a MK1 million bail bond, provides two sureties bonded at MK5 million each in non-cash, reports to Police Headquarters every fortnight and does not interfere with State witnesses.
Magalasi’s bail comes amid an expanding investigation into the controversial acquisition of Amaryllis Hotel by the Public Service Pension Trust Fund for MK128 billion.
The transaction has attracted scrutiny from Parliament, regulators and other stakeholders over the manner in which the investment was approved and the financial risks associated with the deal.
According to recent court proceedings, Magalasi and six other people, including former State Residences chief of staff Prince Kapondamgaga, are facing allegations involving MK3.5 billion in connection with the hotel transaction.
The charges include fraud, money laundering and theft.
Magalasi was arrested by police on September 1,2026 shortly after returning from abroad.
At the time, there were conflicting accounts over whether he had formally been charged, with Magalasi saying he had been charged while police said investigations were continuing.
The Amaryllis transaction has been under scrutiny since questions emerged over its valuation, due diligence and approval process.
The parliamentary hearings exposed concerns about the valuation used to justify the K128 billion purchase, while another valuation reportedly placed the property at about K48.7 billion.
The controversy has also attracted the attention of the Reserve Bank of Malawi(RBM).
In March this year, the central bank had frozen about K72.6 billion linked to the hotel purchase as authorities investigated the movement of funds and possible financial misconduct.
The Public Accounts Committee of Parliament has also been examining the transaction, with hearings raising questions about the investment advice given to the pension fund, the valuation of the hotel and whether appropriate procedures were followed before the acquisition.
Earlier,Nico Asset Managers advised the pension fund leadership against proceeding with the full acquisition, warning that it will take a long time to recover the investment and might not serve the interests of pension contributors.
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