By Innocent Manda & Patience Longwe
LILONGWE-(MANA)-The Malawi Law Society (MLS) has advised the Public Accounts Committee (PAC) of Parliament to suspend the ongoing purchase of Amaryllis Hotel, citing concerns over procedural irregularities and incomplete information regarding the transaction.
Speaking before the Committee on Wednesday, MLS Vice President McHarven Ngwata said the Society was engaging Parliament as part of its mandate to provide guidance on legal and governance matters surrounding the hotel acquisition.
“The information we have presented represents only a fraction of what is available regarding this transaction. Without full disclosure, any recommendations we give could misguide the Committee,” Ngwata said.
Ngwata emphasized that the Society’s preliminary position was that the transaction should not proceed, primarily because correspondence between the fund, its trustees and the Registrar of Financial Institutions indicated that approval had not been properly obtained.
Ngwata further noted that the Registrar of Financial Institutions had thoroughly reviewed the relevant documents and provided guidance, reinforcing the Society’s recommendation to halt the purchase.
“We do not have complete information and therefore cannot issue a definitive legal position. However, based on the data available, the transaction should be suspended,” Ngwata emphasised.
During the presentation, Ngwata outlined a detailed timeline of events from March 2024 through late 2025, highlighting key actions by the Public Service Pension Trust Fund (PSPTF), including correspondence with the Office of the President and Cabinet, reconstitution of the Board of Trustees, issuance of comfort letters and engagements with external legal advisors.
According to Ngwata, legal advice obtained by the Fund indicated that while PSPTF had an 80 percent chance of successfully defending the transaction in court, there was a 20 percent risk of failure due to issues arising from commitment letters issued by the principal officer.
PAC chairperson Steve Malondela applauded the MLS for appearing before the committee, saying the information provided would assist the committee in its investigations.
Malondela also urged members of the public who may have information related to the matter to come forward and assist the committee.
As PAC continues engaging stakeholders, the committee is scheduled to engage the Anti-Corruption Bureau chairperson on Thursday, March 12, 2026.