The Malawi Law Society (“the Society”) has a statutory mandate under section 64(d) of the Legal Education and Legal Practitioners Act “to protect matters of public interest touching, ancillary or incidental to law”. The Society hereby raises grave concerns regarding the proposed acquisition of a hotel by the Public Service Pension Trust Fund (“the Fund”).

The Fund was established to safeguard the retirement benefits of public service employees. It is therefore incumbent upon its trustees and managers to act with the highest degree of prudence, diligence, and fidelity.

The Society has anonymously received information regarding the proposed hotel acquisition, containing the following serious allegations:

1. Allegations of Irregular Reversal of Decision: It is alleged that the Fund’s Board initially resolved not to proceed with the purchase based on expert advice that the transaction was not viable. The decision was allegedly overturned after further engagement, with the price reportedly increasing from about MK47 billion to between MK115 billion and MK145 billion.
2. Allegations of Lack of Independent Due Diligence and Conflict of Interest: It is alleged that critical safeguards were ignored, including the absence of independent due diligence by a hotel expert and lack of a strategic partner. It is further alleged that the entity producing a favourable viability report may have ownership links to the hotel, raising potential conflict of interest concerns.
3. Allegations of Pressuring a Newly Constituted Board: It is alleged that a newly reconstituted Board of Trustees has not been given sufficient time to assess the transaction’s history and is being pressured to approve a deal previously rejected.
4. Allegations of Suspicious Timing of Key Personnel Changes: It is alleged that following the suspension of the Fund’s Principal Officer and the appointment of an Acting Principal Officer, a signed resolution authorizing the acquisition was produced shortly thereafter.

Based on these allegations, there are serious concerns that the transaction may be proceeding under suspicious circumstances, posing a potential threat to the financial security of the Fund’s contributors. The alleged procedural irregularities, potential conflicts of interest, and concerns about a potentially inflated purchase price are significant.

The Society therefore calls for an immediate suspension of the transaction pending a full and transparent review.

The Society further calls upon relevant oversight authorities, including the Anti-Corruption Bureau, the Minister of Finance, and the Attorney General, to launch an urgent and independent investigation into the entire process surrounding the proposed acquisition. The new Board of the Fund should be given adequate time and space to conduct a fresh, independent, and transparent assessment free from external pressure.

The Society remains committed to protecting the rule of law and public interest and will continue to monitor the situation closely to ensure that the pensions of Malawian public servants are protected.

Issued this 19th day of November 2025.

Davis Mthakati Njobvu
CHAIRMAN

Francis Ekari M’mame
HONORARY SECRETARY