Amaryllis Hotel scandal: ACB puzzled by K5.5 billion ‘suspicious’ transaction at National Bank

National Bank of Malawi is facing questions after Yusuf Investments Limited reportedly withdrew K5.5 billion in cash over six weeks, raising concerns about weak oversight in high-value transactions. The Anti-Corruption Bureau (ACB) has described the transaction as “suspicious”.

The Anti-Corruption Bureau (ACB) revealed that the withdrawals occurred between January 27 and March 6, 2026, from Yusuf Investments’ account, linked to the controversial Amaryllis Hotel purchase by the Public Service Pension Trust Fund.

The scale and frequency of the cash withdrawals are unusual for a corporate account, prompting investigators to ask how the bank allowed them without triggering anti-money laundering alerts or scrutiny.

The ACB reopened its probe into the hotel deal on March 16, 2026, focusing on the purchase from Yusuf Investments.

Three days later, the bureau informed Parliament’s Public Accounts Committee that restrictions were placed on K38.5 billion previously frozen by the Financial Intelligence Authority and K38 billion representing the remaining hotel balance.

Authorities said the pension fund had already paid K90.125 billion toward the property, while investigators continue tracing the flow of cash to identify public officials and other individuals suspected of benefiting from the transaction.

Facebook users argue that banks have legal obligations to flag and report unusual transactions, especially when funds are withdrawn in cash repeatedly over a short period.

The lack of timely intervention has raised questions about the bank’s compliance systems.

The ACB says it will continue probing both the financial flows and the individuals involved, while attention now also turns to the role of the bank in allowing such high-risk cash movements without adequate oversight.

Authorities say the pension fund had already paid K90.125 billion toward the property, while investigators continue tracing the flow of cash to identify public officials and other individuals suspected of benefiting from the transaction.

The deal itself has raised serious concerns over possible overvaluation. Amaryllis Hotel was sold to PSPTF by Yusuf Investments at a reported cost of K128.7 billion, despite registered independent valuations placing its value at approximately K48 billion.

The hotel’s controversial purchase has sparked widespread outrage, with allegations of inflated pricing, political pressure, possible kickbacks, and corruption.

The scandal has implicated public officials from both the previous and current administrations of Presidents Lazarus Chakwera and Peter Mutharika, underscoring the depth and reach of the controversy.

While the process leading to the purchase began during the administration of former President Lazarus Chakwera, the acquisition was finalised under the current administration of President Peter Mutharika, who has recently backed the PAC’s inquiry into the Amaryllis Hotel deal.

Some of the public officials named in connection with the transaction 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 served as Chairperson of the PSPTF Board—Chizaso Nyirongo.

Despite the gravity of the allegations, President Mutharika is yet to suspend or dismiss some of the officials named in the scandal, a development that has drawn criticism from governance advocates.