Investigator who uncovered massive 1MDB fraud appointed governor of Malaysia Central Bank

Nur Shamsiah Mohamad Yunus will lead Bank Negara Malaysia, two years after leaving her post as deputy governor, after uncovering the plundering of 1MDB - the country's state investment fund - allegedly by officials linked to Najib Razak, the former prime minister.

Razak himself now stands accused of corruption, and is banned from leaving the country pending further investigations.

Muhammad Ibrahim, the former central bank governor, resigned earlier in the month following allegations that he aided Razak's administration in covering up debts linked to the scandal.

Ibrahim's days were numbered ever since Razak was ousted in a shock election defeat, and the new government disclosed purchases made on behalf of Razak's allies by the central bank.

Billions of dollars were allegedly stolen from the fund in a sophisticated fraud and used to buy everything from artworks to high-end real estate.

Nearly $700 million has appeared in the ousted leader's personal bank accounts while billions more remain unaccounted for.

Shamsiah aided an investigation into 1MDB during her previous stint at the bank. She left the institution in 2016 at the end of her term but without the fanfare typically accorded to such a senior official, raising questions about whether she got on the wrong side of Razak's government.

Nearly $700 million has appeared in the ousted leader's personal bank accounts while billions more remain unaccounted for

Razak shut down a series of domestic investigations into 1MDB while in power, and ejected critics from his administration.

Analysts said Shamsiah's short-term aim would be to restore some stability and confidence to markets, which have fallen heavily recently as investors nervous at the country's new political direction have pulled funds.

Razak's ruling coalition, Barisan Nasional, suffered an election loss after Mahathir Mohamad, a former leader of the BN party, came out of retirement and went head-to-head against his protege.

While many were expecting an easy victory for Razak's BN coalition - who had held power for six decades by controlling the media, government, police and electoral apparatus - Mahathir's surprise return caused what opposition dubbed a "Malay tsunami" and prized open BN's tight grip on power.

The shock victory only highlighted the depth of disgust and disillusionment the country had with former leader Razak, who has denied any wrongdoing and said the money in his account was a donation from the Saudi royal family.