Prime Minister Najib Abdul Razak’s role as state-owned fund 1MDB’s adviser is an “elephant in the room” which has been evaded by the Public Accounts Committee in its probe report, DAP veteran Lim Kit Siang claimed today.

Lim said this was based on Article 117 of the 1MDB Memorandum and Articles of Association (M&A) which requires all major decisions of the company involving financial commitment and restructuring to have Najib’s written authorisation.

“…It is the prime minister who is the most important player in 1MDB, exceeding the role of the Advisory Board, the board of directors and the top management all added together,” said Lim during a speech in Kepala Batas this morning.

Citing the PAC report, Lim said it was “incorrect and misleading” to state that the management structure of 1MDB is divided into three tiers - the advisory board, the board of directors and top management.

“There are in fact four tiers of management authority in 1MDB, namely the prime minister by virtue of Article 117 of 1MDB M&A, the advisory board, the board of directors and the top management, with the prime minister in overall direct control of 1MDB...

“Arising from Article 117, the person who must bear the greatest responsibility for 1MDB must be the prime minister who exercises direct control over 1MDB, as all important investment and restructuring decisions of 1MDB requires his written authorisation,” said the Gelang Patah MP.

The PAC in its report released on April 7 has recommended that 1MDB former chief executive officer Shahrol Azral Ibrahim Halmi and others in the management should be held responsible for the weaknesses in the administration of the state-owned fund.

Lim, however, said that it would be unfair for them to be the only ones made accountable if based on the prime minister’s role as stated in Article 117.

While Petaling Jaya MP Tony Pua had said he was “80 percent satisfied” with contents of the PAC report, Lim said he would only give it a 60 percent mark.

He said this was based on the PAC’s failure to scrutinise Najib’s role; failure to summon several key witnesses including tycoon Low Taek Jho or Jho Low; as well as having allegedly allowed Najib and other Barisan Nasional to distort the findings of its report in their favour.

Lim, as such, said he has invited PAC chairperson Hasan Arifin to attend a public forum on April 13 if he insists that the PAC report exonerates Najib from any wrongdoing or abuse of power.

Najib, as well as other Barisan Nasional ministers and leaders, had described findings of the PAC report as proof of “false allegations” made by their critics in an attempt to topple the government.