The process was in the final stages and should not be a complicated exercise as 1MDB was wholly-owned by MoF Inc, he said.
“The (board of) directors have (also) tendered their resignation,” he told reporters after the launch of Malaysian Directors Academy 2.0 here today.
The move is part of the recommendations made by the Public Accounts Committee (PAC). In its 106-page report, PAC said the transfer of 1MDB assets and subsidiaries to MoF Inc would allow for closer scrutiny of the firm.
The ministry had said it would appoint new board members to reflect the limited business profile of 1MDB.
“We understand that no more activities can be undertaken by 1MDB (after completion of the exercise). So we will look at all those details, and we will have a caretaker board, and it can be made up of MoF people,” he added.
Earlier this month, the government said 1MDB would transfer ownership of Bandar Malaysia Sdn Bhd, TRX City Sdn Bhd as well as Air Itam and Pulau Indah land tracts to MoF Inc, in response to the suggestion by the PAC report on 1MDB (PAC Report).
“For the TRX, we have a joint venture with Lend Lease (Australian-listed property developer). They (the joint venture) cannot move, because they cannot get financing due to the issue with 1MDB. Likewise for Bandar Malaysia (Project).
“It’s very difficult for local or international banks to finance (the project) when you have an issue with 1MDB,” he said.
Johari said 1MDB had also engaged with its bond holders regarding the exercise to ensure that they were on board with the transfers.
Meanwhile, in his keynote speech, Johari urged companies to carefully select their board of directors, making sure that they were qualified with a knowledge of economics and finance and had relevant industry experience.
“Importantly, they must possess high integrity and accountability as well as be brave to point out wrongdoings towards ensuring adherence to good corporate governance.
“Apart from this, the regulators – the Security Commission and Bursa Malaysia – must ensure strict compliance to mandatory reporting requirements and corporate governance standards,” he added.
– BERNAMA