KUALA LUMPUR (May 28): Prime Minister Datuk Seri Najib Razak must not be involved in the investigation into 1Malaysia Development Bhd (1MDB) as he is responsible for approving the state investment vehicle’s deals, says DAP national publicity secretary Tony Pua.

He added that Najib should also sit out any decision on 1MDB’s deals or restructuring moves.

“If Najib were to continue his involvement in the investigations as well as 1MDB’s business decisions, the integrity and trustworthiness of any reports produced will be questioned and the public interest in the matter will be severely jeopardised,” Pua said in a statement yesterday.

He proposed that Deputy Prime Minister Tan Sri Muhyiddin Yassin be given immediate full authority over the direction of investigation of 1MDB because of Najib's direct implication in the transactions of 1MDB.

He added that the Auditor-General must be directed to report directly to the Public Accounts Committee on its findings, bypassing Najib to avoid any potential conflict of interest.

“This is to prevent any attempt by the prime minister to affect any transactions to cover up any incriminating misdeeds which took place in the past,” he said.

Pua said all major investments, restructuring and business decisions of 1MDB should be approved directly by the Cabinet and not Najib alone as dictated in the 1MDB's Memorandum and Articles of Association.

Clause 117 under 1MDB's Memorandum and Articles of Association, dated August 11, 2009, placed absolute power over the company’s decisions in the hands of the prime minister.

He added that controversial businessman Low Taek Jho, or Jho Low, was telling the truth when the latter said Najib was responsible for the RM42 billion debt accumulated by 1MDB.

Pua quoted Low as saying in Euromoney Magazine in March: “Guys, it's very simple, there's a board, who's the shareholder?”

Pua said that as Clause 117 dictated that the prime minister must give his “written approval” for any of 1MDB’s deals, the responsibility over its colossal debt and billions of ringgit in losses directly falls on Najib’s shoulders. – The Malaysian Insider