This is one of the steps taken by the ministry as the sole shareholder of 1MDB.
It said, in a statement today, that “after a detailed study and due deliberation, MOF Inc has agreed to fully implement the various recommendations contained in the Public Accounts Committee report on 1MDB (Public Accounts Committee Report)”.
Besides the dissolution of the 1MDB Board of Advisers, the other PAC Report recommendations were:
# Transfer of ownership of Bandar Malaysia Sdn Bhd, TRX City Sdn Bhd, Air Itam lands and Pulau Indah land to MoF Inc.
# Removal of Article 117 and change of all references from “Prime Minister” to “Minister of Finance”, in the 1MDB Memorandum and Articles of Association
“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.”
The statement said Arul Kanda will remain in his role as president of 1MDB until further notice.
“He will continue to focus on his specific mandate to implement the rationalisation plan, which will include resolution of the recent contractual dispute with IPIC.”
IPIC is the International Petroleum Investment Company formed by the Abu Dhabi government in 1984 to invest in the energy and related sectors across the globe.