1MDB-linked land deal brings Malaysia’s central bank governor down

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Malaysian Prime Minister Mahathir Mohamad accepted on June 6 the resignation of the country’s central bank governor Muhammad Ibrahim which the latter offered on the previous day, reportedly in connection with a controversial land deal by the bank approved late last year.

According to Malaysia’s new finance minister Lim Guan Eng, the central bank bought public land at an overvalued price of about $520 million from the previous administration under former prime minister Najib Razak which used it to pay off some of the debts of 1Malaysia Development Berhad (1MDB), the state investment fund that’s been mired in a massive corruption scandal of global proportions.

However, Muhammad denied wrongdoing and has said he would resign “to avoid tarnishing Bank Negara Malaysia’s reputation.” He also said that the suggestion the bank overpaid to “intentionally aid and abet the misappropriation of public funds” was “totally untrue,” according to national news agency Bernama. He said that the central bank paid market prices for the land and had no knowledge of or control over how the proceeds were used by the old government back then.

“The 1MDB scandal has cost the country dearly and as a Malaysian myself, I am deeply angered, distressed and outraged,” he was quoted as saying.

The new government has yet to announce a successor for Mohammad, but should do it rather quickly, ratings agency Moody’s suggested, in order to maintain investor confidence into the country and ensure a stable monetary policy.

Two former deputy governors of the central bank, Nor Shamsiah and Sukhdave Singh, have been named as possible successors.

Meanwhile, Malaysia’s new Attorney-General Tommy Thomas said on June 6 that with the new administration in place, there will be no more cover-ups in the 1MDB case and that his office will closely work with counterparts in the US, Switzerland, Luxembourg and Singapore in investigations into the graft case and speed up internal prosecution.

“All are equal before the law and no one will be spared,” he said.

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Reading Time: 2 minutes

Malaysian Prime Minister Mahathir Mohamad accepted on June 6 the resignation of the country’s central bank governor Muhammad Ibrahim which the latter offered on the previous day, reportedly in connection with a controversial land deal by the bank approved late last year.

Reading Time: 2 minutes

Malaysian Prime Minister Mahathir Mohamad accepted on June 6 the resignation of the country’s central bank governor Muhammad Ibrahim which the latter offered on the previous day, reportedly in connection with a controversial land deal by the bank approved late last year.

According to Malaysia’s new finance minister Lim Guan Eng, the central bank bought public land at an overvalued price of about $520 million from the previous administration under former prime minister Najib Razak which used it to pay off some of the debts of 1Malaysia Development Berhad (1MDB), the state investment fund that’s been mired in a massive corruption scandal of global proportions.

However, Muhammad denied wrongdoing and has said he would resign “to avoid tarnishing Bank Negara Malaysia’s reputation.” He also said that the suggestion the bank overpaid to “intentionally aid and abet the misappropriation of public funds” was “totally untrue,” according to national news agency Bernama. He said that the central bank paid market prices for the land and had no knowledge of or control over how the proceeds were used by the old government back then.

“The 1MDB scandal has cost the country dearly and as a Malaysian myself, I am deeply angered, distressed and outraged,” he was quoted as saying.

The new government has yet to announce a successor for Mohammad, but should do it rather quickly, ratings agency Moody’s suggested, in order to maintain investor confidence into the country and ensure a stable monetary policy.

Two former deputy governors of the central bank, Nor Shamsiah and Sukhdave Singh, have been named as possible successors.

Meanwhile, Malaysia’s new Attorney-General Tommy Thomas said on June 6 that with the new administration in place, there will be no more cover-ups in the 1MDB case and that his office will closely work with counterparts in the US, Switzerland, Luxembourg and Singapore in investigations into the graft case and speed up internal prosecution.

“All are equal before the law and no one will be spared,” he said.

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