The Finance Ministry announced today a new board of directors for scandal-hit 1MDB, after the previous board was dissolved following a parliamentary inquiry into the state fund, reports Reuters.

The new three-member board would be chaired by Mohd Irwan Serigar Abdullah, secretary-general of Treasury for the Finance Ministry, and includes Norazman Ayob, senior private secretary to the chief secretary of government, and Kamal Mohd Ali, chief operating officer of Prokhas Sdn Bhd, an advisory and project management firm owned by the Finance Ministry.

However, Arul Kanda would continue as president of 1MDB, said the ministry, according to Bernama.

“The change of board members reflects 1MDB’s new direction as a non-operating company, focusing on completion of the successful rationalisation plan and on servicing future debt repayments,” it said in a statement today.

MOF Inc expressed its appreciation and thanks to the previous board, which remained committed and steered the company through a challenging period, resulting in the successful rationalisation plan.

MOF Inc, as the 100 percent shareholder of 1MDB, is pleased to confirm it has implemented the recommendations by the Public Accounts Committee to amend the 1MDB Articles of Association, with effect from May 31, 2016.

This includes, among others, dissolution of the 1MDB board of advisers, removal of the current Article 117 and change of all references from ‘prime minister’ to ‘minister of finance’.

The ministry also said in a statement that “tangible progress” is being made on transfer of ownership of 1MDB’s real estate assets - Bandar Malaysia Sdn Bhd, TRX City Sdn Bhd, Air Itam lands and Pulau Indah land - to the Finance Ministry.

- Agencies