The Amaryllis Hotel saga has taken a dramatic turn after the High Court of Malawi ruled that Yusuf Investments followed “utterly defective processes.”
The company, at the centre of a growing scandal linked to the controversial sale of the luxury hotel, rushed to court demanding that the High Court’s Financial Crimes Division immediately lift the financial freeze imposed by the Financial Intelligence Authority (FIA) and the Anti-Corruption Bureau (ACB).
But instead of relief, they got a legal slap.
Justice Redson E. Kapindu flatly rejected the case, ruling that the entire process used by the company was flawed and could not stand in court.
Justice Kapindu said the company had taken the wrong legal route altogether, ignoring clear procedures set out in Malawi’s financial crime laws.
In its judgment, the High Court exposed glaring blunders in the documents, including confusing filings and even an unsigned application — a basic error that raised eyebrows.
“I form the firm view that both the originating process herein and the application for interlocutory injunction are utterly defective processes for failing to follow the requisite procedures… In short, for all the above-stated reasons, the Court directs that both the commencement Summons (Specially Endorsed), and the Without Notice Application for Interlocutory Injunction herein, are procedurally defective and misconceived under the law and cannot therefore be issued by the Court,” ruled Justice Kapindu as he dismissed the entire case.
Despite the setback, the court said Yusuf Investments who controversially sold Amaryllis Hotel to the Public Service Pension Trust Fund (PSPTF) at a whopping cost of K128.7 billion can still try again. Clearly, the storm around the Amaryllis Hotel deal is far from over.
It was recently revealed during the Parliamentary Public Accounts Committee (PAC) hearings into the hotel’s controversial acquisition by the Pension Fund that independent valuations placed its value at approximately K48 billion, with professional advice cautioning against the investment.
Despite this, the purchase proceeded at a figure almost three times the initial valuation. The hotel’s controversial purchase has sparked outrage, with allegations of inflated pricing, political pressure, possible kickbacks and corruption dominating public debate, forcing both the Financial Intelligence Authority (FIA) and the Anti-Corruption Bureau (ACB) to freeze Yusuf Investments.
Some of the public officials named in the sale include the then Secretary to the Office of the President and Cabinet (OPC), Colleen Zamba; then Chief of Staff at State House, Prince Kapondamgaga; and then Director of Legal Services at OPC who also served as Chairperson of the Board of PSPTF, Chizaso Nyirongo.
On one occasion, the trio are alleged to have attended a meeting in Mzuzu on the deal where only 2 representatives from the pension fund attended. During the meeting, with OPC and State House in majority, it was agreed that the procurement of the hotel had to be concluded as a matter of urgency, allegedly in the interest of the higher office, implying President Lazarus Chakwera’s involvement and influence.
Nyirongo was later moved from OPC to the Pension Fund as Chairperson of the Board, where he provided final oversight on the acquisition. Critics have described the move as strategic in facilitating the deal. Malawi24 could not independently verify these claims or Chakwera’s influence, whether direct or indirect.
While the process leading to the purchase began during the administration of former President Lazarus Chakwera, it was acquisition was finalised under the current administration of President Peter Mutharika who recently backed PAC’ inquiry into the Amaryllis Hotel scandal.
“My administration is not in office for a feast. Public office is a sacred trust bestowed by the people of Malawi, and any misuse of public resources or influence for personal gain is a serious betrayal of that trust,” said Mutharika.
“I reiterate my Government’s firm stance in the fight against corruption. The Public Accounts Committee has my full support. As I promised upon assuming office, I will not shield anyone involved in corruption. That promise remains unbroken,” he said. However, he is yet to fire or suspend officials whose fingerprints are allover the Amaryllis Hotel scandal.
