The Anti-Corruption Bureau (ACB) has told Parliament that although it identified serious investment risks in the K128.7 billion purchase of the Amaryllis Hotel, the issues do not legally amount to corruption.
The bureau said concerns such as an inflated price, lack of fund manager involvement and governance lapses raised red flags but did not meet the legal threshold required to prosecute corruption.
Appearing before the Public Accounts Committee in Lilongwe on Thursday, acting director general Gabriel Chembezi defended the bureau’s December 2025 decision to clear the deal. However, he disclosed that the bureau referred the risks it identified to Frank Mbeta, the Attorney General, for further consideration by relevant authorities.
Chembezi told lawmakers that the bureau’s mandate is limited to proving corruption beyond doubt. He said operational risks, questions about the project’s viability and the rising purchase price could not on their own be treated as conclusive evidence of corrupt conduct under the law.
“If I had a conclusive report that this business is not viable by all means, then the question would be what motivated you—that’s where ACB’s work starts,” Chembezi explained during the committee hearing.
He stressed that suspicion or poor investment decisions alone cannot automatically translate into criminal corruption.
The hotel purchase has attracted intense scrutiny following revelations that valuations rose sharply from about K30 billion in 2023 to K128.7 billion by November 2025. The dramatic increase has raised questions among lawmakers and stakeholders about how the property’s value escalated in such a short period.
Consulting firm EMJ Advisory, which recommended that the property could be worth between K115 billion and K145 billion, admitted before the committee on Wednesday that it is not a registered property valuer. The admission added to concerns surrounding the valuation process used to justify the purchase price.
Chembezi acknowledged that the bureau’s investigation also faced challenges.
He said the complainant who initially raised the matter never came forward, while the Malawi Law Society declined to provide evidence to support its claims regarding alleged irregularities in the transaction.
According to Chembezi, the ACB investigated four allegations raised by the Law Society: the irregular reversal of a previous board decision, lack of due diligence, possible conflict of interest and suspicious timing of personnel changes. After reviewing the issues, the bureau said it found no evidence linking any of them to corruption.
Despite clearing the deal of corruption, Chembezi said the bureau remains open to reopening the case if new evidence emerges.
He suggested that a comprehensive forensic audit could help establish whether fraud or misconduct occurred, noting that the ACB lifted its restriction notice on the transaction in January after investigations concluded, clarifying that the move did not amount to approval of the deal.
