You are here

Malaysian central bank's land purchase from Najib govt under scrutiny

Kuala Lumpur

MALAYSIA'S central bank said on Wednesday that an independent review was underway into its RM2 billion (S$662.6 million) purchase of land from the government during Najib Razak's leadership.

Days after Najib lost the general election in May, Muhammad Ibrahim resigned as central bank governor, having earlier overseen and defended the purchase, which was completed in January.

Other officers have taken leave pending the outcome of the review, that began in August, Bank Negara Malaysia (BNM) said in a statement.

"To facilitate the internal review, relevant officers of BNM have opted to take a leave of absence," the central bank said.

Your feedback is important to us

Tell us what you think. Email us at

Soon after the formation of the new government five months ago, Finance Minister Lim Guan Eng said the money paid by the central bank for the land was used by Najib's administration to cover some of the liabilities of state fund 1Malaysia Development Bhd (1MDB).

Najib is facing multiple corruption charges resulting from a probe into how billions of dollars went missing from 1MDB. He has pleaded not guilty and denied any wrongdoing.

Najib's unexpected election defeat in May resulted in veteran leader Mahathir Mohamad returning to the premiership 15 years after he retired.

Dr Mahathir is seeking to retrieve funds lost by 1MDB, and the the fund founded by Najib is the subject of money laundering and corruption investigations in at least six countries, including Malaysia, Singapore and the United States. REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to