Gerakan Youth chief Tan Keng Liang has uncovered the reason behind The Wall Street Journal ’s failure to clinch the Pulitzer prize for its coverage of the 1MDB issue despite being short-listed.

According to him, Saudi Foreign Minister Adel Al-Jubeir had foiled their chances.

He was referring to the minister stating that the Saudi government is aware of the RM2.6 billion donation to Prime Minister Najib Abdul Razak and that it was given without expectations.

“Maybe WSJ could have won the Pulitzer if Saudi minister didn't reveal it was actually a donation to Najib. Lies won't win. Ethics will,” Tan tweeted.

Earlier, the Gerakan leader took a swipe at WSJ over its latest report, describing it as another spin and challenging the publication to provide credible evidence.

The report claimed that part of the money from the phoney Aabar Investments PJS ended up in British Virgin Islands-based Tanore Finance Corp, the same entity that transferred US$681 million into Najib's personal bank accounts.

1MDB was reported to have transferred US$3.5 billion to the British Virgin Island-based company bearing a similar name to the International Petroleum Investment Company (IPIC) subsidiary Aabar Investments PJS, but having no links with the Abu Dhabi fund.

However, Tan remained unconvinced.

“Why would Saudi foreign minister lie? Why he needs to confirm it was a donation to PM if the matter is untrue? Logic please,” he tweeted, tagging the publication as well.

The Gerakan leader also criticised opposition leaders and supporters for believing such reports.

“Worst kind are those pro-opposition people who support the baseless accusation by a foreign tabloid to tarnish our country's image,” he said.

On the same note, Tan, when quizzed by another twitter user if it was ethical for the prime minister to receive undeclared donation from a foreign power, conceded that it is a grey area.

“This is a grey area in our country. I agree it's time we drew a clear line on political donation for all parties,” replied the lawyer-turned-politician.

“Not taking sides. As long as WSJ can't produce credible evidence, stories remain unfounded. Saudi minister already confirmed donation,” he added.

Previously, the Australian Broadcasting Corporation published a letter from a Saudi prince confirming that a substantial donation would be given to Najib with regard to his governance based on Islamic principles.

The prime minister has repeatedly denied abusing public funds for personal gain, and blamed such allegations on those conspiring to topple him from power.

Putrajaya has also accused WSJ of allowing itself to be part of this smear campaign.