KUALA LUMPUR, Malaysia (AP) – Malaysia’s central bank governor has become the latest senior official to resign amid a corruption probe of the former government that appointed them.
Prime Minister Mahathir Mohamad said Wednesday the government accepted Muhammad Ibrahim’s resignation and a replacement will be named once the Malaysian king gives his consent.
The resignations come less than a month after a surprise May 9 election defeat for then-Prime Minister Najib Razak ended six decades in power for the former ruling coalition.
The central bank is under scrutiny over a 2 billion ringgit ($500 million) land purchase from Najib’s government. Proceeds were used to pay debts of the official 1MDB investment fund, which is under investigation for possible graft and money-laundering.
Muhammad denied wrongdoing and has said previously he would resign to avoid tarnishing Bank Negara Malaysia’s reputation.