This article first appeared in The Edge Financial Daily, on May 19, 2016.

KUALA LUMPUR: It is true and valid that the findings of the Public Accounts Committee (PAC) have found that Prime Minister Datuk Seri Najib Razak’s involvement in troubled 1Malaysia Development Bhd (1MDB) was not as alleged by certain parties, said the ministry of finance (MoF).

The ministry was replying to a parliamentary question by Lipis member of parliament (MP) Datuk Abdul Rahman Mohamad, who had asked Najib, who is the finance minister, to reveal plans to restructure the state development company after the 106-page PAC report on 1MDB concluded that there was no evidence to suggest any wrongdoing or abuse of power by Najib.

The PAC report was tabled in Parliament on April 7, following which Barisan National MPs pointed out that its findings had cleared Najib of any wrongdoing at 1MDB.

However, opposition lawmakers said Najib, as the prime minister, has the power to hire and fire directors as well as approve all investments made by 1MDB, and is responsible for the business decisions by the state investment fund, which had amassed a debt of RM50 billion as at January 2016, by virtue of the power conferred to him under Article 117 of 1MDB’s Memorandum and Articles of Association.

On the restructuring of 1MDB, the MoF said it announced on May 4 that the Minister of Finance Inc (MoF Inc), being the sole shareholder of the company, had agreed to adopt the recommendations made by PAC in its report on 1MDB.

The recommendations included transfering the ownership of Bandar Malaysia Sdn Bhd, TRX City Sdn Bhd, and the lands in Air Itam, Penang and Pulau Indah to MoF Inc and dissolving the advisory board of 1MDB.

It also abolished Article 117 of the Memorandum and Articles of Association of 1MDB and changed the reference of prime minister to finance minister. In line with this, MoF Inc had accepted the resignation of the current board of directors at 1MDB effective May 31, and will appoint new directors.