Lets look at the structure of KL Open. It first comes under KLCA, a State Association. This is important; if it came under Polgar first it has other implications. So it all comes under a State Association. And all State Associations come directly under MCF.
And so MCF cannot abrogate responsibility from this matter. It can ask KLCA to show the resolution that gives the right of organisation to Polgar. KLCA is not one man. If that is the case then KLCA itself should be investigated. Then it is merely pretending to be an Association and that itself is cause enough to strike KLCA from the register.
Whatever terms that are given to Polgar must also be within KLCA's rights. Since it is merely a State Association who's rights are circumscribed, KLCA cannot confer rights to Polgar that are beyond it's own rights.
So any banning can be rightfully questioned. It doesn't matter how many hats Peter wears. That is still the process.