Malaysia’s finance ministry said on Wednesday it would dissolve the board of advisers at state fund 1Malaysia Development Berhad (1MDB), following the recommendations of a parliamentary inquiry into the troubled firm.
The Malaysian parliament’s Public Accounts Committee (PAC) last month had recommended for the 1MDB advisory board, chaired by Prime Minister Najib Razak, to be abolished, following a probe into alleged graft and mismanagement at the fund.
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The finance ministry, which is the sole shareholder of 1MDB, said in a statement it would also remove Article 117 and change all references of “Prime Minister” to “Minister of Finance”, in the fund’s company articles.
Article 117 requires the prime minister’s written approval for all of 1MDB’s financial commitments, including investments, and matters such as the appointment of the board of directors.