KUALA LUMPUR, March 13 — Former finance minister Lim Guan Eng said today he would be filing a defamation suit against Tan Sri Muhyiddin Yassin for accusing him of revoking the Albukhary Foundation’s tax-exempt status, an allegation he described as racially incendiary and denied. Lim said he would take legal action if the former prime minister refuses to withdraw the allegation.

The DAP chairman also demanded that Muhyiddin show proof he had ordered the revocation.

“Unless vigorously rebutted, such seditious statements can inflame sentiments that undermine racial goodwill and threaten religious harmony... Muhyiddin should either produce the revocation letter issued by me or ask his lawyers to advise him properly to avoid facing unnecessary civil proceedings of defamation,” Lim said in a statement issued this afternoon.

“Since there is clearly no such revocation letter, he should apologise and withdraw his false remarks or else face defamatory action that will require him not only to do the same but also pay compensatory damages,” the Bagan MP added.

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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.

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Muhyiddin instead told Lim to explain himself, saying Yayasan Albukhary’s request was given approval during Datuk Seri Najib Razak’s time.

Muhyiddin added that Lim was finance minister and the Inland Revenue Board (LHDN) was under his ministry when Pakatan Harapan (PH) took federal power.

Lim suggested he would likely win the suit since Muhyiddin failed to show any documented proof that he ordered the revocation, citing a similar accusation made against him by a non-Muslim taxpayer from Penang.

“The non-Muslim taxpayer could not produce any evidence or letter that I have directed LHDN to act against him. I filed an action of defamation and succeeded, with the High Court ruling that I was not involved," he said.

Lim claimed that in the absence of proof of any instruction, a minister cannot be held responsible for every single action of the numerous agencies and government-linked companies under his purview.

“If that is the case, then as Prime Minister, Muhyiddin should be responsible for every single corrupt act by all government officials in the country. What type of perverted logic and irresponsible behaviour is that?” he questioned.