(From Reuters)

Malaysian state fund 1Malaysia Development Berhad (1MDB) said on Thursday its board of directors have collectively offered their resignations to the finance ministry following a parliamentary inquiry into the fund.

The bipartisan Public Accounts Committee (PAC), which tabled the report in parliament on Thursday morning, said it found the financing and performance of 1MDB “unsatisfactory” and called for a probe into the fund’s former chief executive.

“This has been a difficult decision to take but we believe it is the right thing to do, given the circumstances, in order to facilitate any follow-up investigations as recommended by the PAC,” 1MDB said in a media statement.

“The board has successfully steered 1MDB through a uniquely challenging period and trusts that, with the release of the PAC Report, a line has been drawn.”

1MDB added that its funds have been fully accounted for and it did not transfer 2.6 billion ringgit into the personal accounts of Prime Minister Najib Razak.

PAC had called for the advisory board of the fund — chaired by Prime Minister Najib Razak — to be abolished and any reference to the prime minister be changed to finance minister in the company’s memorandum and articles of association.

The PAC said former 1MDB CEO Shahrol Azral Ibrahim Halmi has to take responsibility.

“As such, enforcement agencies are asked to investigate Shahrol Azral Ibrahim Halmi and anyone else related,” according to a summary of the report. The full report was not immediately available to Reuters. Read More

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