KUALA LUMPUR: The Minister of Finance Incorporated (MoF Inc) has accepted the resignation of the 1Malaysia Development Bhd’s (1MDB) Board of Directors, effective May 31, 2016.
“This is in line with the governance changes and 1MDB asset transfers to Mof Inc, while new board members will be appointed by the latter in due course, to reflect the limited business profile of the state-owned company,” said the Ministry of Finance in a statement here yesterday.
However, Arul Kanda will remain in his role as president of 1MDB, until further notice, it said.
“He will continue to focus on his specific mandate to implement the rationalisation plan, which will include resolution of the recent contractual dispute with Abu-Dhabi based Inernational Petroleum Investment Corp,” it said.
MoF Inc, as the 100 per cent shareholder of 1MDB, has agreed to fully implement the various recommendations contained in the Public Accounts Committee report on 1MBD (PAC Report) after a detailed study and due deliberation.
The detailed PAC Report recommendations are the transfer of ownership of Bandar Malaysia Sdn Bhd, TRX City Sdn Bhd, Air Itam land and Pulau Indah land to MoF Inc; dissolution of the 1MDB Board of Advisors; removal of Article 117; and, change of all references from ‘Prime Minister’ to ‘Minister of Finance’, in the 1MDB Memorandum and Articles of Association. — Bernama