KUALA LUMPUR, March 14 — Former finance minister Lim Guan Eng today said that he will take legal action against former prime minister Tan Sri Muhyiddin Yassin if the latter does not apologise and withdraw his statement regarding Lim’s involvement in the Albukhary Foundation issue.

Lim said Muhyiddin has failed to produce evidence for his statement that Lim, as then finance minister, had evoked the tax-exempt status of Albukhary Foundation.

"As Muhyiddin is unlikely to withdraw and apologise for his defamatory statements, I will have to see him in court to clear my name and reputation,” the DAP chairman said in a statement.

He also pointed out that Muhyiddin’s statements were inflammatory and seditious as they imply that a non-Muslim minister had revoked the tax-exempt status of a Muslim charitable organisation.

"What is not in doubt is that Muhyiddin’s series of false statements against me is seditious in nature and can undermine racial goodwill and religious harmony,” he added.

He said that his lawyer Guok Ngek Seong is of the opinion that he is on solid legal ground as he did not have knowledge of any action taken by the Inland Revenue Board (LHDN).

"Muhyiddin’s defamatory statement is clearly baseless and unfounded when the purported letter of revocation of Albukhary Foundation’s tax exempt status by me to IRB does not exist,” he added.

At a press conference outside the Malaysian Anti-Corruption Commission (MACC) headquarters in Putrajaya on March 9, Muhyiddin claimed Lim had revoked the tax exemption for Yayasan Albukhary as the finance minister of the first Pakatan Harapan administration.

The Pagoh MP reiterated the same allegation at a PAS centre in Taman Melewar, Gombak, in Selangor that same night.

Despite Lim’s warning, Muhyiddin said he would not retract his allegation.

Yesterday, Lim said he would be filing a defamation suit against Muhyiddin for the allegations, denying the claims and calling them racially incendiary.