Former premier Dr Mahathir Mohamed today said that members of the ruling party had been bribed to vote against him in an election that blocked his bid to address its national assembly.

In a major escalation of his clash with Prime Minister Abdullah Ahmad Badawi which has rocked Malaysia's political scene in recent months, he called his successor a liar and said he would not stop his campaign of criticism.

Mahathir suffered a humiliating defeat on Saturday in a grassroots ballot in his Kubang Pasu constituency in Kedah, coming in ninth among 15 candidates vying for seven positions as delegates to the November assembly.

"I am confident that the decision in the recent elections is caused by bribes. I can't prove this but I know somebody saw one being passed to voters in envelopes. It was money that decided the day," Mahathir told reporters.

Mahathir said the envelopes contained RM200 and a list of numbers which corresponded to the nominees running in the party ballot.

He said that of the seven numbers on the 'approved list' - 2, 3, 4, 7, 8, 11 and 14 - all except No 14 got elected. His son, Mukhriz, who was No 10 on the list was elected, while Mahathir who was No 1 failed to make the cut.

"I know that bribery happens in any politics but I did not think that the ruling party itself used money politics," he said.

"This so-called defeat in Kubang Pasu has not changed my mind at all. Actually it was a defeat but for me it's a moral victory."

Pak Lah's lying habit

The 81-year-old said Umno had gone to enormous lengths to silence him.

"For this small election, the state government mobilised resources making it look like a presidential election," he said.

"I say three cheers for this government ... you have used a big sledgehammer to kill a single mosquito."

Mahathir, who has been enraged by Abdullah's decision to drop his pet projects and has accused him of corruption, nepotism and mismanagement, said the premier had lied to smooth over the cancellation of a proposed new bridge to Singapore.

"Abdullah always makes statements which are actually lies," Mahathir said, adding that he had "developed a habit of lying" after becoming friendly with the leaders of Britain, the United States and Australia.

"You can try and shut me up Pak Lah, but I have a big mouth and I am going to use this big mouth to expose all the misdeeds of the present government," Mahathir said.

"I have a duty to correct things which go wrong to make sure that this country goes along the right path and to make sure that this country is not used by anybody for their own personal or family interest."

Invitation to the AGM

This latest outburst represents a dramatic escalation in Mahathir's clash with the government of Abdullah who he has been accused of corruption, nepotism and mismanagement.

Abdullah has reportedly assured Mahathir that he can attend the general assembly even though he will not be allowed to address it - a right given only to senior office bearers and delegates.

"We invite all party members to the assembly. (Mahathir) has never been excluded," Abdullah was quoted as saying by the Star .

Mahathir was expected to use the Umno assembly to step up his attacks on Abdullah, his hand-picked successor who he now says he regrets appointing to the top job.

The former premier is due to leave for a 10-day overseas trip to the Middle East this evening.