Malaysia dissolves state fund advisory board over corruption

The Malaysian finance ministry on Thursday accepted the resignation of the board of directors of 1MDB, the state fund accused of transferring millions of dollars to accounts of the Prime Minister Najib Razak.

The ministry also agreed to revoke veto power of Razak in the decision-making of the company, which he chairs, said a government statement.

The six board members of 1MDB had resigned a month ago, when a parliament committee criticised in a report the management of the fund set up in 2009 by Razak, the same year he became the prime minister.

1MDB accumulated a debt of $11 billion between 2009 and 2014.

The committee report said the board of directors had breached their responsibilities and recommended, among other things, the dissolution of the board headed by Razak as head of finance.

The 1MDB scandal broke out in the middle of last year when the Wall Street Journal and online news portal Sarawak Report had revealed that Razak had received $681 million in transfers made by 1MDB in his private bank accounts.

Subsequent information had raised the figure to more than $1 billion.

Najib and the company denied the accusations and after an investigation by the anti-corruption commission, the Attorney General of Malaysia exculpated the prime minister of any crime in January this year, attributing the money to a donation from the Royal family of Saudi Arabia.

--IANS

ksk