KUALA LUMPUR, May 12 — Former prime minister Tun Dr Mahathir Mohamad has denied claims that he is funding PAS or any political party for the upcoming state elections.

The 97-year-old has also denied paying the Islamist party to take in his son Datuk Seri Muhkriz as a state election candidate under Perikatan Nasional (PN) banner, New Straits Times reported today.

"I don't have any money, the only person who says I have money is Datuk Seri Anwar Ibrahim.

"That's why I told him, if he could find RM1 billion, I would give half of that to him,” Dr Mahathir quoted as telling reporters in Kedah during an Aidilfitri event in Kampung Naga, Kubang Pasu last night.

He was referring to the prime minister whom he is suing for defamation.

Dr Mahathir and Anwar, 75, have had a rollercoaster relationship spanning decades.

In their latest spat, Dr Mahathir accused Anwar of defaming him at a PKR national congress on March 18 by insinuating the older politician had enriched himself and his family while in office as prime minister.