The MoF, as sole shareholder of 1MDB, has also decided to dissolve the board of advisors of MDB and accepted the resignation of the current board of directors of the state owned fund. These were among the recommendations contained in the PAC report on 1MDB that was released last month.
KUALA LUMPUR: The property development projects and parcels of land under 1Malaysia Development Bhd (1MDB) will be transferred to the Ministry of Finance Inc (MoF Inc) as recommended by the Public Accounts Committee (PAC).
The MoF, as sole shareholder of 1MDB, has also decided to dissolve the board of advisors of MDB and accepted the resignation of the current board of directors of the state owned fund.
These were among the recommendations contained in the PAC report on 1MDB that was released last month.
In a statement, the Ministry of Finance said that as the sole owner of 1MDB, it would implement the various recommendations by the PAC on the fund.
“In line with the governance changes and asset transfers, MoF Inc, hereby confirms its acceptance of the resignation of the 1MDB board of directors, with the effective date of May 31, 2016.
“MoF Inc, will appoint new board members in due course, to reflect the limited business profile of 1MDB,” it said.
The property development projects to be transferred to MoF Inc are Bandar Malaysia Sdn Bhd and TRX City Sdn Bhd.
The two parcels of land that would also be transferred to MoF Inc are the parcels in Air Itam, Penang measuring 97.4 ha and the 128.7 ha in Pulau Indah, Klang.
Both the Air Itam and Pulau Indah land are in the process of being sold and have already got suitors, especially the land in Penang.
As for the Bandar Malaysia and TRX projects, the main developers have already been identified and signed up.
MoF added that Article 117 in the 1MDB memorandum and articles of association would be removed and all references would be changed from “Prime Minister” to “Minister of Finance”,
As for 1MDB’s current president Arul Kanda, MoF said he would stay on in his current position until further notice.MoF said Arul would continue to focus on implementing the rationalisation plan, which will include resolution of the recent contractual dispute with International Petroleum Company (IPIC).
The contractual dispute with IPIC revolves around a 10-year US$3.5bil bond issued by 1MDB in 2012.
IPIC has claimed that 1MDB has not fulfilled some of its obligations, an allegation that the fund disputes.
