KUALA LUMPUR, July 21 — Tan Sri Muhyiddin Yassin has announced that he is going ahead with his defamation lawsuit against Prime Minister Datuk Seri Anwar Ibrahim for claiming the former lied about the Federal Land Development Authority (Felda) settlers’ debt write-off.

The Perikatan Nasional (PN) chairman and Anwar have been locked in arguments on which of them should be the one taking credit for the scheme to cancel the Felda settlers' debt.

"As Anwar has failed to present an open and unconditional apology to me within 24 hours as contained in my lawyer's letter of demand to him, therefore I have instructed my lawyer to continue with the defamation lawsuit against him,” Muhyiddin wrote in the statement posted on his Facebook page late last night.

After Anwar yesterday issued a statement and partially disclosed government documents to show that he had signed and executed the decision to waive Felda settlers' debt, Muhyiddin last night said those documents are actually regarding sukuk — the Islamic equivalent of bonds — and not on the Felda settlers' debt waiver.

Muhyiddin claimed that the documents produced by Anwar do not prove that the latter was telling the truth but the reverse.

"I have already explained many times before this that the document which Anwar signed is regarding sukuk not the Felda settlers' debt waiver. The disclosure of that document proves I was telling the truth. The one who lied and defamed me is Anwar,” Muhyiddin said in a statement last night.

The former prime minister claimed that Anwar's disclosure of the documents allegedly on sukuk meant that the latter did not understand the contents of documents which he had signed as finance minister.

The Pagoh MP said Anwar is "incompetent” to remain as prime minister.

Muhyiddin insisted that he had resolved the waiver of the Felda settlers' RM8.3 billion debt in 2021.

Yesterday, Muhyiddin's former aide Datuk Marzuki Mohamad also disputed the documents disclosed by Anwar, claiming it was instead about a government-guaranteed sukuk to raise funds for purposes such as settling Felda settlers' debt and that this sukuk issuance was decided in an October 2020 Cabinet meeting when Muhyiddin was prime minister.

On July 7, Anwar announced a restructuring programme that would wipe off most of the RM8.3 billion in debt amassed by Felda settlers, saying Muhyiddin had failed to execute this when he had still been the prime minister.

The next day, Muhyiddin insisted he had been responsible for executing this decision in 2021, accusing Anwar of lying to claim credit.

Anwar previously responded by saying Muhyiddin’s administration had only agreed to the debt waiver, but never followed through with it, which was why he could still do it now in 2023.

Among other things, Anwar said the funds for the programme were only allocated in the Budget 2023 that he tabled in February, and were nowhere to be seen in either Budget 2021 or 2022.