Reserve Bank of Malawi Governor George Partridge has told the Public Accounts Committee (PAC) that officials from the Public Service Pension Trust Fund (PSPTF) ignored directives from financial regulators during the purchase of Amaryllis Hotel.
Appearing before the parliamentary committee, Partridge said his office noted several irregularities and concerns in the transaction. As a result, the Reserve Bank, in its role as regulator, instructed the PSPTF board to suspend all processes related to the hotel purchase.
However, he said it was surprising that the transaction proceeded quickly despite the order.
“We are also interested to know what motivated the officials to ignore our instructions and continue with the deal.
We are shocked by this level of disregard,” said Partridge.
He told the committee that his office has since directed National Bank of Malawi and CDH Investment Bank to reverse the payments made for the transaction.
Partridge also said the Financial Intelligence Authority (FIA) has been tasked to investigate the matter and prosecute any individuals found to have acted unlawfully.
In addition, some bank accounts linked to the transaction have been frozen to prevent further use.
He warned that if PSPTF board members continue to disregard regulatory guidance, authorities have the power to take stronger action, including removing them from their positions and referring them for prosecution over financial misconduct.
