The Reserve Bank of Malawi has imposed a penalty on members of the Public Service Pension Trust Fund (PSPTF) board, requiring each member to pay a K40 million fine within 10 days for defying regulatory guidance.
A senior Reserve Bank official, Kaluso Chihana, told the Public Accounts Committee (PAC) that PSPTF board members insisted on proceeding with the purchase of Amaryllis Hotel based on advice from EMJ Advisory.
Chihana said the Reserve Bank repeatedly instructed the board to halt the transaction until proper justification was provided. However, the board continued with the process, disregarding both regulatory advice and financial rules.
He said the penalty, issued on March 4 this year, was a direct response to that defiance.
In addition to the fine, the Reserve Bank also ordered the board to reverse the transaction within seven days.
Chihana further revealed that about K72.6 billion has been traced in various bank accounts linked to the matter, with most of the funds currently restricted to prevent withdrawals.
The central bank maintains that these actions are necessary to enforce compliance and protect public funds.
