At least K72 billion linked to the controversial Amaryllis Hotel deal has been frozen, as the Reserve Bank of Malawi came under intense scrutiny before Parliament on Wednesday.
The Public Accounts Committee is probing how the hotel acquisition was financed and whether public funds or state-linked resources were improperly used.
At the centre of the inquiry are allegations that the central bank may have facilitated or indirectly supported the transaction beyond its legal mandate.
RBM Governor George Patrige said authorities have identified procedural gaps in how the investment was handled and have since demanded explanations from those involved.
“We have traced some amounts ourselves, including through the banks. We have frozen K72 billion, or it has been quarantined.
Out of about K90 billion that was paid, we have traced K72 billion, and we are working with the Financial Intelligence Authority, which has powers to freeze accounts, and the process is ongoing,” said Patrige.
He added that commercial banks have been directed to hold or reverse certain loan-related transactions connected to the deal pending the outcome of investigations.
PAC Chairperson Steve Malondela said the committee had initially withheld public comment to allow recovery efforts to progress without disruption.
“We felt, as a committee, not to communicate earlier because we were focusing on recovery.
However, we have been receiving continuous updates on the progress made,” said Malondela, who described the matter as a potential crime and called for lifestyle audits of those involved.
He further urged thorough scrutiny of officials linked to the transaction, saying the probe must reinforce accountability, transparency and sound financial governance in public institutions.
