Law firm Nav & Co denied that Saifuddin’s remarks, made at a July 15 ceramah, were defamatory.

“Our client has no intention of litigating this matter by way of correspondence. We have instructions to accept service of legal process,” said lawyer Navpreet Singh.

Last week, Sanusi said he would sue Saifuddin for linking him with the alleged theft and misuse of funds, saying that the claims were untrue and malicious.

Sanusi said he had instructed his officers to lodge a police report and initiate legal action.

He said the money, amounting to RM259 million, had been duly accounted for and reported in financial statements audited by the national audit department.

Sanusi’s lawyers from the firm Tengku Amalin & Fauzi demanded Saifuddin apologise within a week from July 20.

They also said Sanusi would commence legal action if Saifuddin failed to comply with the demand.

In a ceramah on July 15, Saifuddin called on Sanusi to confirm whether he had, as chairman of Menteri Besar Incorporated (MBI), been penalised with a compound fine of RM500,000 over the alleged theft of rare earth elements in Sik, Kedah.

Saifuddin was also quoted as saying: “We appointed him as the MB to run the state, not to become a thief.”