The Save Malaysia Movement has urged the government to immediately accept the resignation offer from state-owned fund 1MDB directors.

Centre to Combat Corruption and Cronyism (C4) director Cynthia Gabriel said this was based on the latest announcement that Abu Dhabi-based International Petroleum Investment Company (IPIC) has pulled out of a rescue deal with 1MDB, alleging that 1MDB failed to comply with its end of the bargain.

"The announcement basically confirms what the PAC (Public Accounts Committee) has been saying about the failure of 1MDB's directors to perform their duties.

"It is now essential that the government accepts the offer of resignation by all 1MDB directors for failing to carry out their fiduciary duties," Cynthia told a press conference in Petaling Jaya today.

The 1MDB board of directors had on April 7 collectively offered to resign following the release of the PAC report highlighting mismanagement in the debt-ridden fund.

Save Malaysia movement secretariat chief, Tumpat MP Kamaruddin Jaafar ( photo ), said the latest announcement by IPIC should also encourage the people to push for a change in the country's leadership.

"We have not heard from the Finance Ministry and the government as 'owners' of 1MDB that they have accepted the offer to resign by all the directors.

"So far, we have also not heard that the government will take any further action on the findings of the report," Kamaruddin said.

While 1MDB had noted that the US$50 million in interest now due on the sovereign fund's issued bonds is unpaid by the Abu Dhabi state-owned firm, it stopped short of saying if it will pick up the tab.

Nevertheless, it announced yesterday that it would pay off all its other obligations under any other financing arrangements and has ample liquidity to do so.

Prime Minister Najib Abdul Razak and BN leaders have consistently maintained that findings of the PAC report should put an end to the RM42 billion scandal.

However, critics insist that the report has merely raised further questions and urged for actions to be taken against those named by the PAC.

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