Malaysian Finance Minister Lim Guan Eng(Photo: Ministry of Finance Malaysia)

Kuala Lumpur (VNA)
- Malaysia's state investment fund 1Malaysia Development Berhad (1MDB) is insolvent, said Malaysian Finance Minister Lim Guan Eng on May 23.

In a statement after meeting with those who worked for 1MDB, Lim said the fund’s Board of Directors had confirmed that 1MDB was "insolvent" and unable to pay debts owed. 

One of the fund’s directors announced with Lim that the overseas investments worth 9.8 billion RM (2.46 billion USD), which could help meet 1MDB's financial obligations over the next few years, actually exits.

Lim said president and CEO Arul Kanda was uncertain of the value of these investments, and if they existed.

He asked legal advisors of the Malaysian Finance Ministry to reconsider the position of Kanda as the president of 1MDB.

At the same time, PricewaterhouseCoopers auditing firm was selected to examine financial accounts of the fund.

1MDB is an investment fund formed by former Malaysian PM Najib Razak in 2009 with the aim of serving the country’s socio-economic development.

Former PM Najib was accused of being related to the loss of billions of US dollars in transactions with other countries through the 1MDB. However, the fund representative and Najib for many times rejected the accusation.

Malaysia has set up a special task force to investigate the scandal surrounding the fund.

The team is responsible for carrying out probes, identifying and seizing assets acquired using funds from the state fund.

It also works to seek cooperation from enforcement agencies in the United States, Switzerland, Singapore, Canada and other countries.

The newly-elected PM Mahathir Mohamad said that he will re-investigate the case and is determined to reclaim the loss.-VNA