Malawi President Peter Mutharika has come under fire for failing to act on suspicious cash withdrawals totalling K5 billion from the sale of Amaryllis Hotel.
Former FIA Director General Jean Piriminta was fired after allegedly leaking CCTV footage just two days after receiving it from National Bank of Malawi (NBM).
The footage reportedly shows high-level involvement linked to State House.
It captures Charles Gibson Nankhuni withdrawing K1.5 billion in cash on 23 January and again on 28 January 2026 , a total of K3 billion in an operation allegedly coordinated by Collins Magalasi, a former State House official who also served under president Peter Mutharika.
The money was collected at NBM Capital City Service Centre after the hotel owner, Shiraz Yusuf, issued and confirmed the cheques. The footage also shows unmarked State House vehicles and over 15 armed police officers taking instructions during the cash movement.
The deal started when the Civil Servants Pension Trust bought the hotel at K128 billion, down from K132 billion. An initial K90 billion went through the Reserve Bank of Malawi (RBM), which allowed NBM to recover a K26 billion loan, with the rest going to Yusuf Investments.
Sources say Yusuf Investments then began paying off debts, with many partners demanding cash. This led to a series of cheque withdrawals between January and early March 2026, before Parliament stepped in and froze the account.
On 23 January, Nankhuni first tried to withdraw K1.5 billion but was asked to return the next day due to the size of the amount.
Before releasing the money, NBM verified the cheque with Yusuf and informed FIA , but FIA gave no response. The money was then released. This same pattern repeated across multiple transactions.
Records show about 25 withdrawals between 27 January and 6 March 2026, involving large sums taken by several individuals including Nankhuni, Aisha Aubi, and Mark Kaliati. Some of the money was later deposited into accounts linked to organisations like Blantyre Muslim Jamaat and LMJ Hospital. Sources say many of those withdrawing the money were drivers or staff linked to State House and senior officials.
As pressure grew, Piriminta requested CCTV footage from NBM, but she allegedly shared it internally and with Anti-Corruption Bureau officers, leading to its leak. Government quickly fired her along with FIA legal director Collins Chitsime. Sources say the footage exposed powerful figures, making the situation politically sensitive.
Experts now say FIA failed in its core duty. The agency received transaction reports in advance but did nothing until public pressure mounted. Meanwhile, NBM followed procedure by verifying and reporting the transactions, reinforcing the argument that banks process money and they do not enforce the law.
A valuation expert has also defended the K128 billion price, explaining that in 2023 the hotel was valued at K30 billion as a business and K78 billion as a property, and that such assets increase in value over time. Similar hotel developments in Blantyre and Lilongwe are already exceeding K100 billion before completion.
Chairman of the parliamentary committee Steve Baba Malondela told one of the media houses that the report on Amarylis Hotel was sent to President Mutharika and if the president decided not to act , may be that falls within his mandate .
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