Unregistered Firm Pegged Amaryllis Value at K145bn, PAC Told

A dramatic revelation has emerged in Parliament’s ongoing inquiry into the controversial K128.7 billion purchase of the Amaryllis Hotel by the Public Service Pension Trust Fund (PSPTF), after a key advisory firm admitted it is not a registered valuer, despite recommending that the hotel’s value be pegged between K115 billion and K145 billion.

The disclosure came on Wednesday when EMJ Advisory Public Accountants appeared before the Public Accounts Committee (PAC) of Parliament, which is probing the circumstances surrounding the massive investment of pensioners’ funds into the luxury hotel.

Under intense questioning from PAC chairperson Steven Baba Malondera, the company’s director Emmanuel Chisale conceded that the firm is not licensed to conduct property valuations, raising serious questions about the credibility of the financial advice that informed the PSPTF’s multi-billion-kwacha decision.

Malondera directly challenged the firm’s authority to determine the value of the property, pointing to glaring contradictions in recovery projections presented to the committee. He noted that another professional valuer had earlier told the committee that even at K48.7 billion, it would take 36 years to recover the investment.

Yet EMJ Advisory suggested a valuation more than double that amount, while projecting a significantly shorter recovery period.

“Are you a registered valuer?” Malondera asked. “I am asking this because one of the valuers yesterday told us that at K48.7 billion it will take 36 years to recover the investment and you are saying that for the value in the range between K115 billion and K145 billion it will take about 18 years.”

Responding to the committee, Chisale admitted that EMJ Advisory Public Accountants is not a registered valuation firm, explaining that the company had been engaged by the PSPTF to conduct a business analysis and due diligence, rather than a property valuation.

According to Chisale, the work carried out by the firm largely involved a desk review of the Amaryllis Hotel business, focusing on its operational viability rather than the physical value of the property.

He told the committee that the decision to invest in the hotel rested entirely with the Public Service Pension Trust Fund, adding that EMJ Advisory was not involved in the negotiations that ultimately led to the purchase.

Chisale further revealed that the firm’s involvement began after it received an email request from the pension fund inviting it to undertake the assignment. He said the company accepted the task after reviewing the terms of reference and believing it had the technical capacity to conduct the required analysis.

However, the admission appeared to deepen concerns among committee members about whether the pension fund relied on advice from a firm lacking statutory authority to determine asset value in a transaction involving billions of kwacha in public pension funds.

Meanwhile, the firm’s consultant Simplex Bwanali, who conducted the financial analysis, defended the assessment presented to PSPTF. Bwanali insisted that the assignment involved a business valuation rather than a property valuation, arguing that the analysis focused on the hotel’s income-generating potential and operational viability.

He maintained that the business case showed the hotel could recover the investment in about 18 years, despite the high valuation range proposed.

The Public Accounts Committee is continuing with hearings into the K128.7 billion acquisition of the Amaryllis Hotel, one of the largest investments ever made using Malawi’s public service pension funds, as lawmakers seek to establish whether proper procedures were followed and whether the investment was prudent.

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