TEHRAN, June 06 - Malaysian Prime Minister Mahathir Mohamad has accepted the resignation of the central bank governor, the latest in a string of departures as the 92-year-old leader purges top officials seen as close to the scandal-plagued previous government.
TEHRAN, Young Journalists Club (YJC) - Angered over accusations of massive corruption, Malaysians delivered a shock election result last month by voting out a coalition that had led the country for the six decades since independence.
The new government is seeking to unearth suspected graft, in particular in connection with big losses at state fund 1Malaysia Development Berhad (1MDB), during the nearly 10 years that former premier Najib Razak spent in power, casting a cloud over several top officials.
Mahathir, Najib's mentor-turned-foe, told a news conference after a cabinet meeting on Wednesday that the central bank's governor, Muhammad Ibrahim, had offered his resignation.
"We have not decided on his successor because we need to have the approval of the Agong before we can announce," Mahathir said, referring to the king, adding that the new government would meet him as soon as possible to discuss a successor.
Muhammad, a career central bank official, has completed less than half his five-year term, which began in May 2016.
The resignation followed comments by Finance Minister Lim Guan Eng last month that funds from a sale of land by the government to the central bank had gone to pay the liabilities of the beleaguered 1MDB.
Muhammad had defended the decision to buy the land, saying the transaction met government requirements.
Mahathir has reopened investigations into the state development fund 1MBD, which was founded by Najib.
The fund is the subject of a global money-laundering investigation with authorities saying billions of dollars have gone missing.
Jayant Menon, lead economist at Asian Development Bank, said the uncertainty might produce some negative market reaction in the short term, but overall the change at the bank should be positive.
"This type of outcome bodes well for market confidence, if a more accountable and transparent governance system emerges in the longer term," Menon said.
Former deputy central bank governor Nor Shamsiah Mohd Yunus, who left at the end of her term in November 2016, is among the candidates to replace governor Muhammad, two sources told Reuters.
Source: Reuters
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