Ex-deputy premier Anwar Ibrahim today responded to the Australian report which suggested that he was linked to terrorist outfits, saying that legal action is underway against those who slandered him.

The former deputy prime minister today attacked the executive director of Search for International Terrorist Entities (SITE) who was interviewed in Australia's SBS television report, and local government-controlled press, for reviving old terrorist allegations which he had long refuted.

SITE, said Anwar, is a "minor Washington-based research outfit, which is known to be anti-Islam and has condemned just about every Islamic organisation in the US as being involved with terrorism."

And now, the government, the prime minister, and the local media had 'scandalously' hopped onto the same bandwagon, all in the name of denigrating him and his family, he added in the statement read by his wife Wan Azizah Wan Ismail.

Anwar added that his lawyers are currently working towards initiating legal proceedings against the local media, SBS , and SITE.

The 'Dateline' report broadcasted on the publicly-funded multicultural station on Thursday featured SITE executive director Rita Katz who claimed that Anwar's name was linked to a number of organisations under "huge, huge investigations".

Allegations last year

The SBS report further suggested that an Anwar-linked organisation, the International Institute of Islamic Thought (IIIT), has been "accused of funding Islamic Jihad".

Anwar defended the IIIT, an organisation which he co-founded with Islamic thinker Dr Ismail Faruqi and traditional scholar Sheikh Taha Jabir.

"IIIT has published book and journals and organised various seminars to foster Islamic thought which is development-oriented, pro-democracy and human rights," he said, adding that one conference the body organised was done at the behest of Dr Mahathir.

He said attempts to connect him to terrorism was similarly made in February last year, "when American Muslim missionary Shaykh Muhammad Hisham Kabbani was secured by Umno leaders to make allegations that I was funding a shady Islamic organisation."

"Shaykh Kabbani (later) denied that he had ever made the allegation that I transferred millions of ringgit to a group of terrorists and Islamic radicals in America.

Political agenda

"It is obvious that the state-controlled media's objective, in disseminating accusations by such anti-Islam organisations in order to sully the good name of IIIT, is simply to fulfill the narrow political agenda of national leaders.

Ironically, he pointed out, the prime minister had publicly berated the Jews and the western press only days before.

"Behaviour such as this reveals the true attitude of Umno leaders towards Islam," he said.

In the SBS report, journalist Ginny Stein also claimed that Melbourne FAC representative Dr Abdul Rahim Ghouse was a former director and shareholder in a private company "that has rung alarm bells in the US."

Abdul Rahim, said the report, has had business dealings with Sheikh Yassin Al-Qadi, declared by the US as having financed terrorists.

Owned by Danaharta

Anwar noted that the private company referred by Stein was Abrar Group, an organisation currently owned by Malaysian taxpayers through bailout vehicle Danaharta.

"The relevant authorities should also refer to Nor Mohammad Yaacob, the prime minister's financial advisor, who, at the time in question, was senior advisor of Abrar Group International and managing director of Abrar Corporation.

"At the same time, the Ministry of Home Affairs should explain how Sheikh Yassin Al-Qadi came to be given permanent resident status in this country," he chided.

Meanwhile, in responding to questions from reporters today, Wan Azizah noted that Katz - credited by SBS as America's foremost counter terrorism expert - is currently embroiled in lawsuits for making similar allegations against Muslim groups in the US.

"She is known to have 'ultra-right wing' political leanings," she said.

In compiling their own research on Katz, the Free Anwar Campaign said several Muslims groups in Virginia, and a poultry farm, have sued Katz for claiming on a news program by American network CBS that they had knowingly funded terrorists.