Bank Negara governor offers to resign, says report

Updated 5 years ago · Published on 5 Jun 2018 5:59PM · 6 Comments

Muhammad Ibrahim has been with the central bank since 1984 and was criticised for approving the purchase of a piece of prime land in 2017. – EPA pic, June 5, 2018.

BANK Negara governor Muhammad Ibrahim is said to have tendered his resignation – a fallout from swirling controversy over a RM2 billion land deal that critics slammed as a bailout for troubled 1MDB.

A Najib Razak appointee, he has been under severe pressure in recent days following pointed comments by Daim Zainuddin on the hastily put together deal.

“‎There is reason to question the speed, rigour and motivation for such a deal,” said Daim, the Council of Eminent Persons chairman.

“The land deal is good example of why the independence of BNM, its government process and the appointed stewards of critical institutions are absolutely paramount for the current administration.”

Bloomberg reports, citing unnamed sources, a spokesman declined to comment on whether the governor had offered to resign. It is understood that staff at the central bank have been informed of his offer to resign.

Muhammad has maintained in press statements that the RM2 billion land deal was done at arm’s length. 

But the noise about the deal from the new Pakatan Harapan government and the council has been getting louder.

Among questions being asked is if a valuation report was prepared for the land transaction. When BNM said it was purchasing the land from the government for RM2 billion, red flags went up. 

The new government said Najib used the money raised from the land sale to pay off some of 1MDB’s debts. 

Finance Minister Lim Guan Eng revealed last month that 1Malaysia Development Bhd could not meet its debt obligations on its own, and needed the ministry to pay off nearly RM7 billion of its debts and interests last year.

Muhammad, who has a master’s degree from Harvard University, was appointed as chairman for a five-year term in May 2016 after Zeti Akhtar Aziz stepped down after 16 years at the helm. Zeti was appointed by Prime Minister Dr Mahathir Mohamad in 2000. 

He has been with the central bank since 1984. – June 5, 2018.

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Comments

  • It does not matter from where Mahammad is qualified as in his case Harvard......BUT HE TOOK THE POST HONOURABLY WITH HIDDEN HANDS ON BUT LEFT WITH DISGRACE ....IS GREED THE ANSWER?

    Posted 5 years ago by Mohanarajan murugeson · Reply

  • Daim and Mahathir, seeing themselves as aging knights, clearly believe their task is moral imperative, but have no choice but to send a clear message, that seals their legacy and history.. In such a case, cowardice is part of the casualties of war. Mohammad probably believed in the sea of wrongs around him, his error was so low down the totem pole. Nevertheless, his loss sends a signal strong and absolute. Its part of life's gamnle.

    Posted 5 years ago by Bigjoe Lam · Reply

  • BANK Negara is supposed to be an independent institution to monitor flow of funds and provide check and balance when it comes to illegal activities. As a Najib apointee, Muhammad Ibrahim should have taken extra care to transparently negotiate a fair price for the BNM land instead of rushing it through. In the wake of his offer to resign, he should come clean on all the "deals" that slipped through the cracks because his reputation is on the line.

    Posted 5 years ago by Roger 5201 · Reply

    • .... talk is easy ..... if one is in his position, one can understand the pressure .... should ask why Zeti refused to extend her tenure ......

      Posted 5 years ago by Malaysian First · Reply

  • Hope Tun granted "independence" and answerable only to parliament, including quarterly briefing, to Judiciary, MACC, BNM among others ..... BEFORE .... Anwar and Azmin took over. Looking at their histories, many people distrust them!!

    Posted 5 years ago by Malaysian First · Reply

  • No need to simply axe people unless evidence of clear wrongdoing unacceptable to the position. What does ex-BNM governor Zeti think about this?..

    Posted 5 years ago by MELVILLE JAYATHISSA · Reply