The Secondary School Teachers Union (Sestu) has demanded the resignation of the Public Service Pension Trust Fund (PSPTF) Board of Trustees within three weeks over its decision to purchase the Amaryllis Hotel at a reported cost of K128.75 billion.
In a letter dated February 25, 2026, addressed to key public institutions and stakeholders, Sestu accuses the board of failing in its fiduciary responsibility in the management of pensioners’ contributions.
The union says the PSPTF board resolved to buy the Lilongwe-based hotel at K128.75 billion despite an earlier valuation or proposed price of K47 billion.
Sestu states that the transaction raises serious concerns about prudence, transparency, and accountability in the management of members’ funds.
“Secondary school teachers make monthly contributions to the PSPTF from their salaries with the legitimate expectation that their retirement benefits will be safeguarded and prudently invested,” reads part of the letter signed by Sestu general secretary Druwen Frank Moyo.
The union says the circumstances surrounding the transaction have significantly undermined members’ confidence in the board’s stewardship of pension funds.
Sestu further cites assessments by the Registrar of Financial Institutions contained in letters dated November 14 2025 and December 23 2025, which indicated that the proposed transaction would disadvantage contributors and expose members’ benefits to undue financial risk.
The union also commends the Executive Director of Financial Institutions, who is also Governor of the Reserve Bank of Malawi, for directing the rescission of the transaction in a letter dated February 20 2026.
According to Sestu, the intervention demonstrates commitment to safeguarding pensioners’ interests and upholding financial prudence.
In its letter, the union formally demands that the PSPTF Board of Trustees resign within three weeks to allow for what it describes as independent and transparent investigations into the board’s resolution to purchase the hotel at a substantially higher price.
Sestu warns that failure to comply with the demand will compel the union to take “appropriate action” to ensure accountability.
The union has also questioned the enforcement of compliance measures under the Pensions Act, 2023.
It notes that despite the establishment of a Pensions Compliance and Support Department by the Reserve Bank of Malawi, there have reportedly been two years of non-remittance of employees’ contributions to the public fund by the government.
The letter has been copied to the Minister of Finance, the Law Society of Malawi, the Parliamentary Committee on Education, the Malawi Congress of Trade Unions, the Civil Servants Trade Union, and several professional associations in the health sector, among others.
The development places the management of public pension funds under renewed scrutiny, with teachers positioning themselves as key stakeholders seeking accountability in the handling of their retirement savings.
