Malaysian probe into fund scandal stalls after PM sacks deputy

A Malaysian parliamentary investigation into a graft scandal at a state investment fund embroiling Prime Minister Najib Razak has been put on hold as cracks in the long-ruling party appeared to widen on July 29.

The allegations of extensive graft at the debt-laden fund are the biggest threat to Najib's credibility since he took office in 2009 and could threaten the grip his United Malays National Organisation (UMNO) party has kept on politics since independence in 1957. 

Najib sacked his deputy on July 28 after he called on Najib publicly to explain the situation around 1Malaysia Development Bhd (1MDB), which has debts of more than $11 billion and is being investigated for financial mismanagement and graft. 

The man overseeing the parliamentary investigation into 1MDB, Public Accounts Committee (PAC) chairman Nur Jazlan Mohamed, was appointed a new deputy home minister on July 28 and said in a statement he would therefore resign from his committee post. 

"All proceedings that had been arranged for August, including 1MDB, will be halted until the new PAC line-up is announced at the next Dewan Rakyat sitting," he said, referring to parliament. 

Members of the PAC are not allowed to hold any position in the cabinet. Parliament will choose new PAC members in October. 

An opposition member of the PAC, Tan Seng Giaw, said the  committee should continue its investigation in line with parliamentary rules, media reported. 

Najib has denied taking any money for personal gain, saying the corruption allegations are part of a malicious campaign to force him from office. 1MDB has denied transferring funds to Najib and an interim government report has found nothing suspicious. 

Sacked deputy prime minister...