News Coverage

Date: 
04-05-2016
MoF Inc to fully implement PAC report recommendations
MoF Inc on 1MDB: Board of directors' resignation accepted, Arul still president
Source: 
New Straits Times

PUTRAJAYA: The Minister of Finance Incorporated (MoF Inc) today announced its agreement to fully implement recommendations made on 1Malaysia Development Bhd (1MDB) in the Public Accounts Committee report.

It said that MoF Inc, as the 100 per cent shareholder of 1MDB, made the decision after a detailed study and due deliberation.

It said it has accepted the resignation of the 1MDB Board of Directors, effective May 31, 2016. "MoF Inc. will appoint new board members in due course, to reflect the limited business profile of 1MDB," it said in a statement today.

It added Arul Kanda would remain in his role as 1MDB president until further notice. "He will continue to focus on his specific mandate to implement the rationalisation plan, which will include resolution of the recent contractual dispute with IPIC (International Petroleum Investment Company)."

The detailed PAC Report recommendations, are as follows:

* Transfer of ownership of Bandar Malaysia Sdn. Bhd., TRX City Sdn. Bhd., Air Itam lands and Pulau Indah land to MoF Inc;

* Dissolution of the 1MDB Board of Advisors, and,

* Removal of Article 117 and change of all references from “Prime Minister” to “Minister of Finance”, in the 1MDB Memorandum and Articles of Association.