Secondary School Teachers dismayed with plans by Pensions Fund to acquire Amaryllis Hotel

The Secondary School Teachers Union (SESTU) has expressed dismay over plans by the Public Service Pension Trust Fund (PSPTF) to acquire Amaryllis Hotel in Blantyre.

SESTU argues that as a stakeholder in the PSPTF, it was not consulted but it has followed with increasing alarm the developments surrounding the proposed purchase of the hotel at 128.75 billion Kwacha by the PSPTF Board.

The union further says its concerns are substantiated by an expert assessment of the Registrar of Financial Institutions who has explicitly stated that the proposed transaction is likely to breach investment limits under the Financial Services Directive of 2025 while at the same time resulting in serious liquidity mismatch and heightened concentration risk.

In an official communique released by SESTU, signed by its General Secretary, Frank Druwen Moyo, the union says it is also disturbed by the rapid escalation of the purchase price from an initial valuation of 47 billion Kwacha to the current 128.75 billion Kwacha.

“This significant increase, without transparent justification, raises serious questions about the integrity of the valuation process.

“We have also noted with concern that the PSPTF is already engaged in the construction of another hotel in Blantyre,” said Moyo.

Moyo added that it is alleged that the legal council representing Amaryllis Hotel in this transaction is currently serving as Director of the Anti-Corruption Bureau (ACB).

“This confluence of roles presents an unacceptable conflict of and severely undermines public confidence in the integrity of any oversight provided by the ACB in this matter,” he said.

SESTU therefore demands an immediate suspension of the transaction. It also demands the Malawi Parliament to inquire the matter. Further, the union has demanded that all reports, including the full investigation report from the ACB and the viability assessments from all advisors must be made publicly available. Lastly, the union has asked the PSPTF Board to immediately establish a formal mechanism for consulting with unions representing public servants on all major investment decisions that carry significant risk.

“We cannot and will not stand by while the retirement security of our members is placed in jeopardy by decisions that appear to defy both financial logic and regulatory guidance,” concluded Moyo.