Deputy Minister in the Prime Minister Department M Kayveas today dismissed the allegation that Barisan Nasional was involved in a scandal involving election campaign materials.

He denied that the ruling coalition had entered into any deal with the suppliers, who claim that BN owes them about RM100 million.

In an exclusive report by malaysiakini yesterday, the suppliers said they had churned out posters, badges, banners and caps after striking a deal with Elegant Advisory Sdn Bhd.

The company had claimed to have secured a 'lucrative' government contract to produce the campaign paraphernalia.

However, Kayveas, who is also BN vice-president, denied any knowledge about this.

The deputy minister said he attended every BN supreme council meeting prior to the elections and this deal was never raised.

"Throughout the BN supreme council meetings, we have no knowledge of the supply of these merchandise," he told reporters at the parliamentary lobby.

Serious allegation

Kayveas said the allegation was serious and warned that those involved could face stern action for defaming the BN.

"BN never made such a deal. It is unfair and unjust to make BN look like they owe the suppliers money," he added.

He also suggested that the suppliers might be desperate in collecting money and are 'using malaysiakini ' for this purpose.

It is learnt that one supplier was suppose to meet BN secretary general Radzi Sheikh Ahmad regarding the matter on July 6 but the meeting has been postponed until next week.

Earlier, it was also reported that the contractors had even pleaded their case with Prime Minister Abdullah Ahmad Badawi.

However, it was learnt that Abdullah too denied BN's involvement in the scam and advised the despairing contractors to settle the matter with those who made the purchase order.

Other politicians approached by the contractors for assistance include MCA chief Ong Ka Ting and Penang Chief Minister Dr Koh Tsu Koon.