Four Bank Negara officers on leave pending RM2bil land purchase probe (Update)


  • Banking
  • Wednesday, 31 Oct 2018

FILE PHOTO: A general view of the headquarters of Malaysia's central bank, Bank Negara Malaysia, in Kuala Lumpur January 29, 2013. REUTERS/Bazuki Muhammad/File Photo

KUALA LUMPUR: Bank Negara Malaysia has confirmed that officers involved in the January purchase of land valued at RM2bil have gone on leave.

In a two-paragraph statement issued on Wednesday, the central bank said it had in August this year commissioned a review by an independent party in relation to the purchase of the land on Lot 41. 

“The review is still ongoing. To facilitate the review, relevant officers of BNM have opted to take a leave of absence,” it said.

StarBiz reported earlier on Wednesday that four officials have gone on leave pending investigations into the land purchase.

The four were opted for the leave as the authorities conducted an internal probe into how the sale was concluded. 

In June this year, former Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim resigned from his post over the controversy.

The controversy over the sale of land came about because the proceeds were alleged to have been used to settle some of the liabilities of debt-laden 1Malaysia Development Bhd.

The issues were the pricing and speed in which the transaction was completed. The RM2bil price tag is what the land would have cost if the purchase was for commercial reasons.

However, in Bank Negara's case the purchase was not for commercial reasons hence the contention was the price should have been lower.

Also, the money was transferred to the Federal Government before the full transaction was completed.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

1MDB , land purchase

   

Did you find this article insightful?

Yes
No

Next In Business News

Unisem's FY20 net profit rises to RM142.79mil
Mah Sing sets higher sales target of RM1.6bil for 2021
Kerjaya Prospek net profit lower at RM90.59mil in FY20
Airline industry expected to remain cash negative in 2021, says IATA
Sime Darby Property sets higher 2021 sales target of RM2.4bil
Maybank posts net profit of RM6.48b in FY20, div 38.5 sen
Sime Darby's 2Q net profit leaps on Tesco stake sale, motors division
Public Bank posts net profit of RM4.87bil in FY20, declares 13 sen payout
Axiata posts RM256mil loss in 4Q, declares 5 sen dividend
Banks, commodity plays shore up KLCI

Stories You'll Enjoy


Vouchers