(AFP) The Malaysian embassy in Peru yesterday rejected accusations by state prosecutor Jose Ugaz that ousted Peruvian president Alberto Fujimori stashed away funds here.

The embassy also denied the prosecutor's charges that Fujimori was being protected by the Yang di-Pertuan Agong with whom Peru's leader for 10 years was said to have a personal friendship.

"The Malaysian embassy wishes to categorically declare that all the allusions are baseless, misleading and damaging and add nothing to good relations between Malaysia and Peru," it said in a statement.

The embassy moreover noted that Rulers here change every five years, and that the current king was not the one Fujimori met when he visited Kuala Lumpur last year.

The new Peruvian government, headed by President Alejandro Toledo, is currently gathering evidence aimed at procuring Fujimori's extradition from Japan where he has been staying since faxing his resignation to Congress last November.

Ugaz said last week that he "presumed that Fujimori diverted money through an Asian circuit composed of Japan, Malaysia and Singapore".

"Insofar as this money was not detected, Fujimori may have access to it because he is known to be a good friend of the king of Malaysia, and the money, moreover, may not be in his name but in the name of companies," Ugaz added.