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Malaysia central bank issues directive requiring information from 1MDB

Wednesday, June 3, 2015 - 20:03

[KUALA LUMPUR] Malaysia's central bank on Wednesday said it had launched a formal enquiry into state fund 1MDB and has issued a legal directive requiring information to examine whether there had been any violation of its rules.

"With respect to 1MDB, a formal enquiry has commenced to examine any contravention of the Central Bank's rules and legislation," Bank Negara Malaysia said in a statement.

"This has involved the issuance of a legal directive requiring information from the entity," it said.

The bank said it has also taken statements from individuals involved in the governance of 1MDB, but did not elaborate.

"The Central Bank is doing everything within the powers provided under its legislation, including collaborating with other agencies, to contribute towards a swift resolution of the matter," it said.

Bank Negara's statement comes after the Monetary Authority of Singapore (MAS) said in March it was in touch with Malaysia's regulators over investigation into the state fund.

The company, a property-to-energy group whose advisory board is chaired by Malaysian Prime Minister Najib Razak, is facing criticism over its debt of nearly RM42 billion (S$15.45 billion) and its financial management.

REUTERS