The government is reviewing a clause in 1MDB's memorandum of articles and association (M&A) which gives Prime Minister Najib Abdul Razak sole discretion for certain matters pertaining to the state-owned entity.

The government said it is also reviewing a similar clause for former 1MDB subsidiary SRC International.

Both firms belong to the Finance Ministry.

"For your information, the government is reviewing Article 117 of the 1MDB's M&A and Article 116 of SRC's M&A as well as several other related clauses.

"Any changes will be made pending all requirements of the law (are first met) and will be filed with the Companies Commission of Malaysia (CCM)," it said in a written parliamentary reply.

The government was replying to a question from Abdul Aziz Sheikh Fadzir (Umno - Kulim Bandar Bahru) who submitted the question in the final Parliament session of 2015 which concluded earlier this month.

Article 117 of 1MDB's predecessor, the Terengganu Investment Authority (TIA), states that the prime minister must give his written approval for any TIA dealings.

Article 116 of SRC's M&A states that the prime minister's approval is required for amendments to the M&A and the termination of directors and the company's top management.

Abdul Aziz asked the finance ministry if it intends to maintain the clauses in the M&A's of 1MDB and SRC which gives sole discretion to the prime minister as the only finance ministry representative in the firms.

The MP also asked how many Finance Ministry-owned firms have similar clauses in their respective M&As.

The government's written reply did not respond to the second question.

The MACC is investigating RM42 million alleged to have flowed into the prime minister's personal bank account from SRC.

The prime minister is the chairperson of the 1MDB's board of advisors.