Malaysian 1MDB fund to become shell company
Malaysian government's strategic development company 1Malaysia Development Berhad to become shell company after rationalisation plan is fully implemented
1MDB (1 Malaysia Development Berhad) logo is set against the Petronas Twin Towers at the flagship development site, Tun Razak Exchange in Kuala Lumpur, Malaysia.
According to Malaysia's state fund 1Malaysia Development Berhad's (1MDB) President, Arul Kunda, the company will become a shell company once its rationalisation plan is fully implemented.
"Based on the rationalisation plan and Public Accounts Committee's suggestion that its subsidiaries are removed [from under the company's control], 1MDB will be a shell company," Arul said on Thursday.
"There will be no daily operation and 1MDB will serve its debts through cash flow derived from the rationalisation plan," he added.
A Malaysian parliamentary inquiry into the debt laden state fund said on Thursday that the board of 1MDB had failed to carry out its responsibilities and its former chief, Shahrol Azral Ibrahim Halmi, must be further investigated.
It added that senior management at 1MDB withheld crucial information from the board and made transactions without its knowledge or approval.
The issue over 1MDB is related with Malaysian Prime Minister, Najib Razak, who faces corruption charges over alleged wrongdoings with $681 million, which was transferred to his private bank account.
The attorney general who cleared a huge sum in Razak's personal bank account said it was donations from the Saudi royal family and was not linked to the troubled 1MDB state fund.
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