The Selangor Menteri Besar Incorporated (MBI) today threatened legal action against those who accuse the agency of corruption relating to the payment made to former University Selangor contractor Jana Niaga Sdn Bhd.

"Any claim of wrongdoing or misappropriation is slander and we will not hesitate to take legal action against those who make such allegations," MBI said in a statement.

Denying the claims made by prime minister's special officer Rizal Mansor on Sunday, MBI said payment made to Jana Niaga was made following arbitration in court.

"Rizal claimed that the settlement between Jana Niaga and Unisel was questionable, in that the payment was made even though Jana Niaga breached agreement terms and failed in its claims at the High Court and Court of Appeal.

"This is completely untrue because according to the facts of the case, in December 2012, the Shah Alam High Court ruled that Jana Niaga and Unisel must reach a settlement through arbitration as stated in the contract.

"This was upheld by the Court of Appeal in July 2013. The Courts never found fault in either Jana Niaga or Unisel," MBI said in a statement.

It also denied that payment of RM60 million was made to Jana Niaga.

Rizal had on Sunday challenged Menteri Besar Mohd Azmin Ali to explain alleged improprieties in paying a non-performing contractor.

Rizal claimed Azmin's predecessor, Abdul Khalid Ibrahim had already stopped payments to the contractor when the project was awarded was found to be unsatisfactory.