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Malaysia 1MDB scandal
AsiaSoutheast Asia

Malaysian parliament investigation of scandal-plagued state fund 1MDB on hold

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Prime Minister Najib Razak is under increasing pressure over leaked confidential documents that allegedly show the money, from state investment fund 1MDB, went into his personal accounts. Photo: AFP
Reuters

 

A Malaysian parliamentary investigation into a graft scandal at a state investment fund embroiling Prime Minister Najib Razak has been put on hold as cracks in the long-ruling party appeared to widen on Wednesday.

The allegations of extensive graft at the debt-laden fund are the biggest threat to Najib’s credibility since he took office in 2009 and could threaten the grip his United Malays National Organisation (UMNO) party has kept on politics since independence in 1957.

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Najib sacked his deputy on Tuesday after he called on Najib publicly to explain the situation around 1Malaysia Development Bhd (1MDB), which has debts of more than US$11 billion and is being investigated for financial mismanagement and graft.

The man overseeing the parliamentary investigation into 1MDB, Public Accounts Committee (PAC) chairman Nur Jazlan Mohamed, was appointed a new deputy home minister on Tuesday and said in a statement he would therefore resign from his committee post.

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"All proceedings that had been arranged for August, including 1MDB, will be halted until the new PAC line-up is announced at the next Dewan Rakyat sitting," he said, referring to parliament.

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