The Washington-based International Institute of Islamic Thought (IIIT) has dismissed an Australian television report on its alleged links to terrorist groups as "cheap shots" and "wild" allegations.

It also denounced the implication that jailed Malaysian ex-deputy premier Anwar Ibrahim - a co-founder in 1981 and still a board member of IIIT - was therefore 'guilty' by association.

IIIT vice-president Dr Jamal Barzinji, contacted this morning, described the allegations as "utter nonsense", saying that the institution has always espoused civilisational dialogue.

"Our activities and programmes have been purely intellectual and we have always advocated the middle path of moderation and interaction between Muslims and non-Muslims. Allegations that we are supporters of terrorism are just cheap shots and nonsense," he said.

"We've published over 400 books written in English and Arabic and also conducted hundreds of seminars and workshops. In none of these have we ever advocated violence... we have spoken out against terrorism and have nothing to hide."

The purported connection between IIT and terrorism had been made on the Dateline programme aired by Australian Special Broadcasting Station (SBS) last Wednesday, on Malaysia''s purported role as a financial hub for terrorist organisations.

The report claimed that IIIT is "a body accused of funding (Palestinian group) Islamic Jihad" (which has often claimed responsibility for suicide bombings in West Bank and Gaza, acts which they say are necessary in the bid to end Israeli occupation in the territories).

'Investigation inconclusive'

Dateline

also raised Anwar's supposed links to "hardline Muslim fundamentalists", as well as his connections to US-based organisations which have been subjected to investigations.

According to the transcript of the programme, this allegation was made by US-based terrorism consultancy Search for International Terrorist Entities (SITE) executive director Rita Katz.

She had cited Anwar's role as "a former board member of the IIIT", which was subjected in 2001 to raids by the Customs department of the US Treasury following suspicions that many Virginia-based Muslim groups were channeling funds to international terrorist groups.

A Virginia-based lawyer Dona Sheinbach from a firm representing some of the Muslim groups said the US agency officials had raided IIIT's offices and seized computers and documents.

"So far, none of the documents have been returned. The investigations into IIIT are inconclusive. There have been no developments in the investigations since that time," she said when contacted today.

'Dialogue first' approach

Asked if IIIT - like Anwar - would be suing SBS, Jamal said other avenues would be explored before legal steps were initiated.

"We will approach them and seek a dialogue with them on their allegations. Only after studying and interacting with SBS will we consider legal action," he said.

"This is what we did with CBS. After interacting with them, they were willing to settle the issue out of court."

Jamal was referring to the New York-based broadcasting corporation that aired a 60 Minutes report alleging that IIIT had provided financial support for terrorist activities.

He also clarified a Bernama report which claimed that Anwar's eldest daughter Nurul Izzah had received RM300,000 from IIIT for her tertiary education (she is now a final-year electronics engineering student) in Malaysia.

The family has since clarified that the money did not come from IIIT but from friends who had wanted to help out after Anwar's dismissal from office in September 1998 and subsequent imprisonment for corrupt practice and sodomy.

Jamal confirmed that Anwar's close friends did provide financial help to the family in "their time of need".

"It was slightly less than RM300,000, maybe about RM260,000. This was offered not at one time but over several occasions, especially when Nurul Izzah was changing university. It was for her tuition fees and field trips, as well as for the studies of her brothers and sisters."

Anwar lobby's denial

The Dateline report had also touched on the involvement of Dr Rahim Ghouse, the Melbourne representative of international lobby network, the Free Anwar Campaign (FAC)

It said Rahim and his business partner Dr Wan Hasni Sulaiman have had business dealings with Sheikh Yassin Al-Qadi, a man accused in the US of funding terrorist activities and declared a terrorist by Singapore.

Rahim, it said, has also been discovered to be a former director and shareholder of a private company "that has rung alarm bells in the US".

However, FAC webmaster Raja Petra Kamaruddin ( photo ) denied any such links and alleged in turn that SBS and Bernama had conspired with the Malaysian government to vilify Anwar.

SBS and Bernama have since disclaimed having done so, while Anwar has instructed his lawyers to file defamation suits against all the media companies involved in publishing the news.