Malaysia's finance ministry said Wednesday it would dissolve the board of advisers at 1Malaysia Development Berhad (1MDB) and take over its remaining assets, in an apparent move to scale down a state fund whose scandals have rocked the government.
Parliament's Public Accounts Committee (PAC) last month had called for the 1MDB advisory board, chaired by Prime Minister Najib Razak, to be abolished, after a probe into alleged graft and mismanagement at the fund, whose debt in January had totalled about 50 billion ringgit ($12.5 billion).
The finance ministry, which is the sole shareholder of 1MDB, said in a statement it would also comply with the PAC's recommendation to remove Article 117 and change all references of "Prime Minister" to "Minister of Finance," in the fund's company articles. Najib is also the finance minister.