Key Business Points

• Reserve Bank of Malawi Governor George Partridge has imposed K40 million fines on each Public Service Pension Trust Fund trustee for regulatory breaches.
• Trustees claim the penalties were issued without a proper hearing, exploiting the current absence of an appeals tribunal to challenge such decisions.
• Eight trustees have formally appealed the fines, raising concerns over potential regulatory overreach in Malawi’s financial sector.

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Trustees Challenge RBM Fines Amid Regulatory Dispute

A simmering conflict between the leadership of the Public Service Pension Trust Fund and the Reserve Bank of Malawi has reached a new peak, with trustees accusing Governor George Partridge of abusing his authority. The dispute centres on hefty penalties of K40 million imposed on each trustee for failing to meet regulatory obligations tied to the fund’s acquisition of Amaryllis Hotel.

In a written statement to The Nation, fund board chairperson Chizaso Nyirongo said trustees learned of the penalties in a letter dated February 20, 2026 — over three weeks after the alleged breach occurred on January 26. He stressed that no prior opportunity was offered for trustees to present their side before penalties were imposed.

"The registrar has shifted from a regulatory role to what amounts to bullying," Nyirongo claimed, citing the use of terms such as "arrogant" and "disobedient" in official communications. He also pointed out that, while the Financial Services Appeals Tribunal is mandated to hear challenges to such decisions, it remains unestablished, leaving trustees with limited recourse.

Nyirongo’s position underscores broader questions about administrative fairness in Malawi’s financial services sector. With eight trustees having already filed appeals, four have attempted direct engagement with Partridge without success, according to the board chair.

Governor Partridge, however, maintains the sanctions are well-founded. Speaking earlier this week, he said the trustees had failed to deliver necessary sale agreement documents for Amaryllis Hotel within the required timeframe, though he acknowledged the deadline had been extended.

Not all legal voices side with the trustees. Private practice lawyer Benedicto Kondowe defended the penalties, emphasising that Section 75 of the Financial Services Act (2010) grants the Registrar explicit enforcement powers. He noted that, in the absence of the tribunal, trustees can still seek redress through the High Court via judicial review on grounds such as illegality and procedural unfairness — including denial of the right to be heard.

The episode raises significant implications for Malawi’s investment climate and governance of pension funds. For entrepreneurs and business owners, it highlights the importance of compliance with financial service regulations — while also serving as a reminder that regulatory bodies wield considerable discretion in their enforcement actions. Until the Financial Services Appeals Tribunal is finally set up, such unilateral decisions could continue shaping the operating environment for both investors and trustees.

Parliament’s Public Accounts Committee recently concluded its own inquiry into the Amaryllis Hotel deal, effectively removing political pressure on the immediate dispute, but it did not resolve the procedural concerns at its heart. As the legal challenge unfolds, Malawi’s business community will watch closely to see whether this becomes a precedent for how regulatory disputes are managed in the absence of formal review mechanisms.

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