Malaysia's 1MDB blames board; former chief to be investigated

A Malaysian parliamentary inquiry into 1Malaysia Development Berhad (1MDB) said the board of the troubled state fund had failed to carry out its responsibilities and its former chief must be further investigated.

The bi-partisan Public Accounts Committee (PAC), which tabled the report in parliament on Thursday (Apr 7), said in its much delayed report that it found the financing and performance of 1MDB "unsatisfactory".

It called for advisory board of the fund, which was headed by Prime Minister Najib Razak, to be abolished and any reference to the prime minister to be changed to finance minister in the company's memorandum and articles of association.

This is one of the final reports on investigations into alleged mismanagement at 1MDB, and a financial scandal surrounding Mr Najib, who heads the fund's advisory board.

"The PAC is of the opinion that the former CEO of 1MDB Shahrol Azral Ibrahim Halmi has to take responsibility for those restrictions and weaknesses," said the report in its recommendations.

"As such, enforcement agencies are asked to investigate Shahrol Azral Ibrahim Halmi and anyone else related."

The PAC began its probe into 1MDB in May last year but faced several delays. Work of the committee stalled in July when the PAC chairman Nur Jazlan Mohamed stepped down from his post after being appointed as deputy home minister in Mr Najib's government.

An interim report by the auditor-general last year found nothing suspicious after vetting the fund's accounts, and Malaysia's attorney-general rejected a call by the central bank to initiate criminal proceedings against 1MDB.

The Attorney-General also cleared Mr Najib in January of any corruption or criminal offences, saying the US$681 million transferred into Mr Najib's personal bank account was a gift from a member of Saudi Arabia's royal family and that most of it was returned.