Court strikes balance in Amaryllis Hotel account freeze dispute as probe into PSPTF deal deepens
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The High Court in Lilongwe has delivered a ruling that attempts to balance financial investigations with business continuity in the ongoing controversy surrounding Yusuf Investments Limited, owners of Amaryllis Hotel.
At the centre of the case is a contested transaction involving the sale of Amaryllis Hotel to the Public Service Pension Trust Fund (PSPTF), a deal now under investigation over alleged irregularities.
Justice Redson Kapindu ruled that while authorities such as the Financial Intelligence Authority (FIA) and the Anti-Corruption Bureau (ACB) have legal grounds to freeze accounts during investigations, such measures must not completely paralyse legitimate commercial operations.
The court confirmed that two bank accounts directly linked to the receipt and movement of funds from the hotel sale will remain frozen, as they are central to the ongoing inquiry.
These accounts, according to the court, are critical in tracing the flow of money tied to the transaction that has triggered public and institutional scrutiny.
However, in a partial relief to the company, the court ordered the release of two operational accounts used for day-to-day hotel business, after finding they were not connected to the disputed sale funds.
Both parties reportedly agreed that the operational accounts could be unfrozen, easing pressure on the hotel’s normal business activities.
Despite this, escrow accounts remain under restriction, with the court noting their potential importance to the investigation and possible recovery of funds.
Yusuf Investments had argued that the freezing order amounted to “commercial strangulation,” claiming it had severely disrupted business operations and insisting the transaction was lawful.
On the other hand, the ACB maintained that the freeze was necessary to prevent any possible movement or concealment of funds while investigations into suspected financial misconduct continue.
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