BANK Negara governor Muhammad Ibrahim has tendered his resignation, said Prime Minister Dr Mahathir Mohamad.

Dr Mahathir said it had not been decided who would replace Muhammad Ibrahim, whom many think of as “Najib’s man”.

The resignation follows recent revelations that the central bank had overpaid the government, then led by prime minister Najib Razak, for a piece of land in Kuala Lumpur.

Dr Mahathir announced Muhammad’s resignation at a press conference in Putrajaya after the cabinet meeting today.

He said the consent of the Yang Di-Pertuan Agong was needed before the government could announce a successor.

Reuters, however, reports that Nor Shamsiah Mohd Yunus, the former Bank Negara Malaysia deputy governor, is tipped to succeed Muhammad.

The prime minister’s announcement confirms news yesterday that Muhammad had offered to resign.

Muhammad, who became governor in May 2016, has in recent days been the target of scrutiny of the Council of Eminent Persons chairman Daim Zainuddin, over the bank’s RM2 billion land purchase from the previous government.

The Pakatan Harapan government has said former prime minister Najib had used the money from the sale to bail out 1Malaysia Development Bhd. Muhammad has insisted that the deal was above board. – June 6, 2018.