1MDB board resigns after Parliament panel review

The 1Malaysia Development Berhad (1MDB) sign is displayed at the site of the Tun Razak Exchange (TRX) project in Kuala Lumpur, Malaysia.
The 1Malaysia Development Berhad (1MDB) sign is displayed at the site of the Tun Razak Exchange (TRX) project in Kuala Lumpur, Malaysia. PHOTO: BLOOMBERG

The members of 1Malaysia Development Berhad's (1MDB) board tendered their resignations yesterday after the Public Accounts Committee (PAC) blamed the state investor's former chief executive for its financial troubles, which have rocked the government of Prime Minister Najib Razak.

The parliamentary panel in charge of reviewing government financial practices did not blame any politician or anyone outside the firm in its 106-page report tabled to federal lawmakers yesterday.

1MDB said its board of directors collectively offered their resignations to the Finance Ministry, but it is unclear if the government has accepted them. "This has been a difficult decision to take but we believe it is the right thing to do, given the circumstances," it said.

In its report, the PAC said "enforcement agencies are requested to investigate Datuk Shahrol Azral Ibrahim Halmi and others in management related to this".

 
 
 

Mr Shahrol, who was the company's chief executive from its inception in 2009 to early 2013 and who remains one of its directors, said there was "no wrongdoing" under his watch.

The panel, which found the financing and performance of 1MDB "unsatisfactory", called for the removal of its advisory board headed by Datuk Seri Najib. It also recommended doing away with the need for his approval in all key decisions, as required by the company's regulations.

Mr Najib said the report disproved allegations by former premier Mahathir Mohamad that money had gone missing from the firm, but acknowledged the weaknesses found in its management.

Dr Mahathir, who has led a campaign to oust Mr Najib, questioned why Mr Shahrol was being blamed when "he didn't found 1MDB".

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A version of this article appeared in the print edition of The Straits Times on April 08, 2016, with the headline '1MDB board resigns after Parliament panel review'. Print Edition | Subscribe