Amaryllis scandal cover-up! FIA boss, top investigators redeployed in shock shake-up

The Amaryllis Hotel scandal has taken a new twist amid claims of a cover-up, after Financial Intelligence Authority (FIU) Director-General Jean Pilimita and key investigators were abruptly redeployed by the Office of the President and Cabinet, raising fears that the current administration may be attempting to derail the ongoing investigation.

An internal communication seen by this publication confirms that Acting Director of Investigations, Fidelis Chinsakaso, has been redeployed to the Office of the President and Cabinet (OPC) with immediate effect. The same communication indicates that Senior Legal Prosecutions Officer Bahati Msosa has resigned and is expected to leave her position later this month. Malawi24 could not independently ascertain the authenticity of the memo.

These changes come amid reports that Pilimita has been quietly relieved of her responsibilities, although no official explanation has been provided.

Sources familiar with the developments say the restructuring is not routine.

“This is not just about one person. The entire technical team is being targeted,” said one source who spoke on condition of anonymity.

The source warned that the developments could have serious consequences for Malawi’s international standing in the fight against financial crime.

Meanwhile, one of Malawi’s renowned social and political commentators, Onjezani Kenani, said the deployment by officials at FIA by government is a “highly questionable conduct” by the current administration.

“It’s sad to learn that the Director of the Financial Intelligence Authority has been removed from her position for freezing Amaryllis accounts. Does it mean the current government [officials] benefited from the fraudulent sale? Why is government conducting itself in this manner? The other day, the government blocked the committee’s report from being presented in Parliament. This is highly questionable conduct,” said Kenani, who warned that “any attempts to hide the truth will not be successful.”

The timing of the shake-up has raised further suspicion, coming as scrutiny intensifies over the controversial acquisition of the Amaryllis Hotel by the Public Service Pension Trust Fund (PSPTF). The deal, valued at K128.7 billion, has sparked outrage after revelations that independent valuations placed the property at around K48 billion — nearly a third of the purchase price.

Investigations have also focused on financial transactions linked to the deal, including a revelation made today by the Anti-Corruption Bureau that Yusuf Investments, owners of the Amaryllis Hotel, withdrew K5.5 billion in cash from National Bank of Malawi within a six-week period. The ACB described the transaction as “suspicious” and confirmed that an investigation has been opened.

ACB also revealed that Pension Fund already paid Yusuf Investments Limited (YIL) MK90.125 billion “as part payment for the purchase of the hotel”.

Critics such as renown whistleblower, Alexious Kamangila, now fear that the redeployment of key FIA personnel could weaken ongoing efforts to trace financial irregularities tied to the Amaryllis scandal, which has implicated various public officials in both the previous and current administrations of Lazarus Chakwera and Peter Mutharika.

Some of the officials named include former Secretary to the Office of the President and Cabinet (OPC), Colleen Zamba; former Chief of Staff at State House, Prince Kapondamgaga; and former Director of Legal Services at OPC, who also serves as Chairperson of the PSPTF Board, Chizaso Nyirongo. The current Acting Director of ACB, Gabriel Chembezi, has also been named.

The deal to sell the Amaryllis Hotel to the pension fund began during President Chakwera’s tenure and was finalised under the Mutharika administration.