The Malawi Law Society (“the Society”) issues this public statement on developments concerning the proposed acquisition of a hotel by the Public Service Pension Trust Fund (“the Fund”).

I. Introduction

On 19 November 2025, the Society issued a public statement expressing grave concerns regarding the proposed acquisition of a hotel by the Fund. The Fund was established to safeguard the retirement benefits of public service employees. The Society issued that statement pursuant to its 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.

This statement provides a chronology of events, outlines the Society’s interventions, and articulates continuing concerns regarding the handling of this matter.

II. Engagement with Oversight Authorities

Following its earlier statement, the Society wrote to the Attorney General and the Governor of the Reserve Bank of Malawi requesting urgent intervention. The Society highlighted allegations including absence of independent due diligence by a hotel expert, potential conflict of interest in the viability analysis report, concerns of inflated pricing, and allegations that the transaction was being rushed despite previous rejection by an earlier board.

In response, the Acting Director of the Bureau issued a restriction notice preventing the acquisition from proceeding without prior written consent pending investigations. The Bureau later requested a meeting with the Society, but the Society declined participation due to concerns over a potential conflict of interest involving the Acting Director General, who was alleged to be representing one of the parties involved in the transaction.

The Society formally requested clarification on this issue but states that no response was received. The Reserve Bank acknowledged the Society’s letter but did not issue a final position before the then-Governor left office.

The Attorney General later communicated findings indicating that investigations did not establish evidence of irregularities, conflicts of interest, inflated pricing, or undue pressure on the Board, and advised the Fund to review risks and proceed in the best interests of members.

III. The Society’s Observations

The Society notes that, according to information in the public domain, the transaction proceeded and certain payments were reportedly made to the sellers. It is further understood that the Office of the Registrar of Financial Institutions may have raised concerns about the transaction.

The Society expresses concern about the speed at which decisions were made and questions whether fiduciary duties were adequately observed by public officers involved.

The Society also raises concerns about the credibility of the Bureau’s investigation, particularly in light of unresolved conflict-of-interest questions and the rapid conclusion of the investigation relative to the complexity of the transaction.

IV. Recommendations and Way Forward

1. The transaction should be rescinded immediately as directed by the Registrar of Financial Institutions, failing which further proceedings, sanctions, or legal action for restitution should be pursued.
2. Trustees, officers of the Fund, and the Attorney General should provide full public disclosure regarding the status of the transaction, including purchase price, payments made, due diligence reports, strategic partners, and advice received from the Reserve Bank.
3. The Acting Director General of the Bureau should declare any interest in the matter and recuse himself from related proceedings.
4. A new, transparent, and independent investigation should be undertaken into the transaction from inception to conclusion.
5. The Board of the Fund should issue a detailed public statement explaining its decision-making process, risk management approach, and how the investment serves members’ interests.
6. Members of the Fund are encouraged to demand accountability and transparency from trustees and officers.
7. The Malawi Law Society will continue monitoring the matter and take further action where necessary.

Issued this 26th day of February 2026.

Davis Mthakati Njobvu
CHAIRMAN

Francis Ekari M’mame
HONORARY SECRETARY