Khazanah's Board Of Directors Allegedly Resigned To Let Tun M Decide Who Gets To Stay
Khazanah Nasional Bhd confirmed earlier today, 26 July, that its entire Board of Directors have signed undated resignation letters
The nine Khazanah board members who resigned included Datuk Seri Nazir Razak, brother of former premier Datuk Seri Najib Razak
The Straits Times reported senior government officials and financial executives close to the situation as saying that the mass resignation was intended to let Prime Minister Tun Dr. Mahathir Mohamad decide who should stay or leave the sovereign wealth fund.
Mahathir criticised Khazanah weeks ago when he claimed that the sovereign wealth fund had strayed from its objectives, and became a "convenient vehicle" for the previous Barisan Nasional administration to reward officials with positions in the wealth fund.
Following Khazanah's announcement, Rembau Member of Parliament (MP) Khairy Jamaluddin took to Twitter to express his views on the matter
Khairy explained that under Mahathir's first tenure as the Prime Minister, Khazanah was a holding entity for the government's stake in companies, and it had no strategic role.
Nonetheless, Khazanah had been transformed into a strategic investment arm tasked with increasing the country's asset value, and recruited the "best and brightest Malaysians" to achieve so.
"It would be a shame to dismantle everything that has been built only to replace it with the business (model) of the 1990s," the Rembau MP wrote, in reference to the mass resignation.
"My fear: GLCs (government-linked companies) will be broken up and flogged off to a new set of 1990-esque businessmen," Khairy added.
You can read Khazanah's press statement in full here.