Parliament briefed on pension fund scandal

A major governance scandal has erupted in Malawi after suspended Public Service Pension Trust Fund principal officer George Jimu told Parliament that the fund was pushed into making decisions without a legally constituted board, raising serious questions about legality and abuse of authority at the highest level. According to the Nyasa Times, when Jimu appeared before the Public Accounts Committee, he revealed that the fund was repeatedly summoned to high-level meetings, in 2024, chaired by former Secretary to the President and Cabinet Colleen Zamba and driven by Office of the President and Cabinet (OPC) director of Legal Services Chizaso Nyirongo – despite the board being dissolved. Documents presented to the committee show that a high-level meeting – attended by senior OPC officials, including former State House Chief of Staff Prince Kapondamgaga – directed the fund to proceed with a transaction. Commitment letters were also issued under instructions from OPC-linked officials, even though there was no legally recognised board in place to approve such a move. Jimu made it clear that under the fund’s rules, the principal officer cannot approve or sign off on board decisions – he has no voting powers and cannot legally bind the institution. He told the committee that all contracts and resolutions must be signed by the board chair and fund secretary under trustee Article 15. Even more troubling, Jimu testified that after the trustees’ terms expired – and even after a new board was licensed in December but not recognised by OPC – the pressure did not stop. The revelations point to possible illegality, including the usurpation of board powers, procedural breaches, and the potential invalidity of financial commitments made during the period.