BNM to give 1MDB time to bring back RM7.7b, investigation on fund closed
Datuk Muhamad Ibrahim said Bank Negara Malaysia decided against imposing a deadline for the repatriation after 1MDB said it needed the fund to restructure its debt. ― Picture by Saw Siow Feng
The state investment firm was compounded for failing to bring back the money but BNM Governor Datuk Muhamad Ibrahim said the central bank decided against imposing a deadline for the repatriation after 1MDB said it needed the fund to restructure its debt.
“Restructuring debt can take time,” Muhamad told reporters at the bank's economic quarterly performance announcement here.
The deadline for 1MDB to pay the compound is May 30. The fund has said it will pay the fine.
Muhamad said since 1MDB said it will pay the fine, BNM considered matter to be concluded.
“We compounded them for their failure to repatriate the funds… and this will close all the investigation on 1MDB,” he said.
Muhamad acknowledged that the firm was still under investigation by other government agencies, but explained that the central bank's decision was limited to its own probe.
He added the bank will continue to assist other agencies such as the police in their investigation by providing the necessary documents.
Inspector-General of Police Tan Sri Khalid Abu Bakar announced in April that a special task force headed by him will be set up to probe the state investment firm.
The Parliament's Public Accounts Committee's had recommended in its report released April 7 that the authorities investigate former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi over weaknesses in the company’s management.
In the report, the panel said 1MDB’s board of directors failed in their responsibilities to the company and its shareholders by allowing its management to make decisions that were not in line with good accounting practices.
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