Malaysia has named Nor Shamsiah Mohamad Yunus, an experienced former central bank official, as the new central bank governor.
Finance Minister Lim Guan Eng said Friday that the king has consented to Nor Shamsiah's appointment to head Bank Negara Malaysia from July 1 for a five-year term.
Malaysian Finance Minister Lim Guan Eng, right, walks with newly appointed National Bank Gov. Nor Shamsiah Mohamad Yunus, front left, to attend a press conference in Putrajaya, Malaysia, Friday, June 22, 2018. (AP Photo)
She succeeds Muhammad Ibrahim, who resigned two weeks ago after the central bank came under scrutiny over a 2 billion ringgit ($500 million) land purchase from the government. Proceeds were used to pay debts of the 1MDB state investment fund, which is under investigation for possible graft and money-laundering.
Muhammad denied any wrongdoing but said he resigned to avoid tarnishing Bank Negara Malaysia's reputation. He was the latest senior official to quit amid a corruption probe of the government of former premier Najib Razak, whose long-ruling coalition suffered a shocking defeat in May 9 elections.
Newly appointed National Bank Gov. Nor Shamsiah Mohamad Yunus, left, walks to attend a press conference by Malaysia finance minister in Putrajaya, Malaysia, Friday, June 22, 2018. (AP Photo)
"Bank Negara Malaysia will continue to focus on delivering its mandate of maintaining monetary and financial stability, in the best interests of the nation," Nor Shamsiah said at a joint news conference with Lim. She declined to comment when asked on her priorities, saying she will review the situation once she takes office.
Nor Shamsiah, who joined Bank Negara in 1987, left quietly two years ago and joined the International Monetary Fund before her latest appointment. She was Bank Negara deputy governor for six years and was part of an investigation team probing the 1MDB saga before she quit.
Zeti Akhtar Aziz, who was central bank governor for 16 years and now is part of a government advisory team, said Nor Shamsiah's appointment will inspire market confidence.
Malaysian Finance Minister Lim Guan Eng, right, shakes hands with newly appointed National Bank Gov. Nor Shamsiah Mohamad Yunus during a press conference in Putrajaya, Malaysia, Friday, June 22, 2018. (AP Photo)
"She knows all about central banking, she will hit the ground running," Zeti told local media. "By appointing her, the government has demonstrated its respect for the institution and I think this is what the market wants to see, an institution that remains independent in performing its functions."
Najib set up the 1MDB fund when he took power in 2009. U.S. investigators say Najib's associates stole and laundered $4.5 billion from the fund from 2009 to 2014, some of which landed in Najib's bank account.
Prime Minister Mahathir Mohamad has reopened investigations into 1MDB that were stifled during Najib's rule and banned Najib and his wife from leaving the country. Mahathir, who was premier for 22 years until 2003, emerged from retirement to lead his alliance to an election victory bolstered by anger over the 1MDB scandal.
In addition to Muhammad, the country's attorney general and anti-graft chief also have been replaced.
Police have raided Najib's home and other properties, seizing 114 million ringgit ($28.7 million) in cash and hundreds of expensive designer handbags and jewelry. The government has said Najib's administration conducted an "exercise of deception" over 1MDB and deceived Parliament over the country's financial situation.
PUTRAJAYA, Malaysia (AP) — Malaysia's imprisoned former Prime Minister Najib Razak on Monday won an appeal to pursue his bid to serve his remaining corruption sentence under house arrest.
In an application in April last year, Najib said he had clear information that then-King Sultan Abdullah Sultan Ahmad Shah issued an addendum order allowing him to finish his sentence under house arrest. Najib claimed the addendum was issued during a pardons board meeting on Jan. 29 last year chaired by Sultan Abdullah that also cut his 12-year jail sentence by half and sharply reduced a fine. But the High Court threw out his bid three months later.
The Court of Appeals, in a 2-1 ruling on Monday, ordered the High Court to hear the merits of the case. The decision came after Najib's lawyer produced a letter from a Pahang state palace official confirming that Sultan Abdullah had issued the addendum order.
“We are happy that finally Najib has got a win,” his lawyer Mohamad Shafee Abdullah said. “He is very happy and very relieved that finally they recognized some element of injustice that has been placed against him.”
He said it was “criminal” for the government to conceal the addendum order. Shafee said that a new High Court judge will hear the case.
In his application, Najib accused the pardons board, home minister, attorney-general and four others of concealing the sultan’s order “in bad faith.” Sultan Abdullah hails from Najib’s hometown in Pahang. He ended his five-year reign on Jan. 30 last year under Malaysia’s unique rotating monarchy system. A new king toverok office a day later.
Home Minister Saifuddin Nasution Ismail said his ministry and the prisons department only received the pardons board's order to commute Najib's sentence. He said he wasn't disputing that an addendum order exists but that he has no knowledge of it.
Najib, 71, served less than two years of his sentence before it was commuted by the pardons board. His sentence is now due to end on Aug. 23, 2028. He was found guilty in a corruption case linked to the multibillion-dollar looting of state fund 1Malaysia Development Berhad.
The pardons board didn’t give any reason for its decision and wasn’t required to explain. But the move has prompted a public outcry over the appearance that Najib was being given special privileges compared to other prisoners.
Najib set up the 1MDB development fund shortly after he took office in 2009. Investigators allege at least $4.5 billion was stolen from the fund and laundered by Najib’s associates through layers of bank accounts in the United States and other countries, financed Hollywood films and extravagant purchases that included hotels, a luxury yacht, art and jewelry. More than $700 million landed in Najib’s bank accounts.
Najib is still fighting graft charges in the main trial linking him directly to the scandal.
FILE - Former Malaysian Prime Minister Najib Razak arrives at the Kuala Lumpur High Court complex escorted by prison officers in Kuala Lumpur, Malaysia, Thursday, April 4, 2024. (AP Photo/Vincent Thian, File)
Supporters of former Prime Minister Najib Razak wait outside the Court of Appeals, in Putrajaya, Malaysia, Monday, Jan. 6, 2025, before Najib won an appeal to pursue his bid to serve his remaining corruption sentence under house arrest later Monday. (AP Photo)
Supporters of former Prime Minister Najib Razak wait outside the Court of Appeals, in Putrajaya, Malaysia, Monday, Jan. 6, 2025, before Najib won an appeal to pursue his bid to serve his remaining corruption sentence under house arrest later Monday. (AP Photo)
Supporters of former Prime Minister Najib Razak waits outside the Court of Appeals in Putrajaya, Malaysia, Monday, Jan. 6, 2025, before Najib won an appeal to pursue his bid to serve his remaining corruption sentence under house arrest later Monday. (AP Photo/Vincent Thian)
A supporter of former Prime Minister Najib Razak waits outside the Court of Appeals, in Putrajaya, Malaysia, Monday, Jan. 6, 2025, before Najib won an appeal to pursue his bid to serve his remaining corruption sentence under house arrest later Monday. (AP Photo/Vincent Thian)
