HRCC defends NBM, says banks are not cops, K5b saga exposes gaps in financial system
Malawians seeking answers over the controversial K5 billion cash withdrawals linked to the sale of Amaryllis Hotel are being urged to look beyond the banking sector, as the Human Rights Consultative Committee (HRCC) says that National Bank of Malawi (NBM) may have fulfilled its legal obligations in a saga that has shaken public confidence in financial oversight.
The HRCC has come out in defence of the bank, arguing that it is misleading to place blame on NBM when regulatory institutions that were duly informed failed to act.
HRCC chairperson Robert Mkwezalamba said the bank followed all required procedures, including verifying the transactions, confirming with the account holder and notifying relevant authorities.
“National Bank followed procedure. They verified the transactions, confirmed with the account holder, and notified the relevant authorities. At that point, their legal obligation was fulfilled,” said Mkwezalamba.
The K5 billion cash withdrawals, now under parliamentary scrutiny, have raised serious questions about the role of oversight bodies, particularly the Financial Intelligence Authority (FIA), which reportedly received prior alerts but did not intervene.
According to information emerging from the probe, NBM officials reportedly contacted FIA ahead of the large cash withdrawals, including two separate K1.5 billion transactions conducted in January 2026.
Mkwezalamba stressed that banks are not law enforcement agencies and cannot arbitrarily block legitimate transactions.
“A bank cannot refuse to honour a customer’s cheque without lawful justification. If anything, the law compels them to pay on demand once due diligence is satisfied. The responsibility to investigate suspicious transactions lies with enforcement agencies like FIA,” he said.
He further warned against what he described as a growing tendency to scapegoat institutions operating within the confines of the law, while ignoring failures by those mandated to act.
“We must be careful not to criminalise compliance. If the bank alerted authorities and no action was taken, then accountability must start with those who had the power to investigate and intervene,” he said.
The controversy has been further inflamed by revelations that former FIA Director General Jean Piriminta was dismissed after allegedly leaking CCTV footage of the transactions, reportedly showing high-profile individuals, including State House-linked operatives, involved in the withdrawals.
Mkwezalamba said the focus must now shift to institutional accountability and systemic reform, describing the matter as a reflection of deeper gaps in Malawi’s financial governance systems.
“This issue is bigger than one bank. It exposes gaps in our financial oversight systems. The question Malawians should be asking is, why were red flags ignored?” he said.
The HRCC has since called for a transparent and impartial investigation, urging Parliament and relevant agencies to establish the full facts without political interference.
