ZCZC
BCN-32
MALAYSIA-ECONOMY-BANK
Malaysia central bank chief quits after 1MDB-linked scandal
KUALA LUMPUR, June 6, 2018 (BSS/AFP) – Malaysia’s central bank governor
has resigned, the prime minister said Wednesday, after claims the bank helped
the previous regime cover debts linked to a financial scandal by purchasing
government land.
Muhammad Ibrahim’s days had looked numbered since the new government,
which came to power last month after a shock election win, disclosed the
purchase made by Bank Negara Malaysia from Najib Razak’s government.
Former prime minister Najib, his family and cronies, are accused of
looting billions of dollars from sovereign wealth fund 1MDB in an elaborate
fraud that stretched from Switzerland to Los Angeles.
The graft allegations were a major reason voters rejected Najib’s
coalition, breaking their six-decade hold on power.
Announcing Muhammad’s resignation, Prime Minister Mahathir Mohamad said
the Harvard-educated banker’s replacement had not yet been decided on and the
king still needed to give his approval.
In late 2017, Najib’s government sold land in Kuala Lumpur for about two
billion ringgit ($500 million) to the central bank, according to the finance
ministry.
The money raised by the sale was used “to service debt obligations of
1MDB”, the ministry said.
The central bank has insisted the purchase was “at fair value” and said it
had given information on the matter to anti-corruption authorities for a
review.
Muhammad, who had served with the central bank since 1984, was only two
years into his term as governor which was due to end in 2021.
He had replaced Zeti Akhtar Aziz, a widely respected figure who served 16
years as central bank chief but had been at odds with Najib as corruption
allegations mounted.
BSS/AFP/HR/1320