Former opposition leader Anwar Ibrahim has today withdrawn his RM100 million defamation suit against Malaysian United Indian Party president S Nallakaruppan

Anwar, who is representing himself, said he agreed to withdraw after Nallakaruppan denied making a contentious statement eight years ago before the Permatang Pauh by-election, claiming that his words were twisted by the media.

The PKR de facto leader also said that he was glad that the allegation that he was traitor as per the affidavit by Senior Assistant Commissioner Musa Hassan has also been denied by Nallakaruppan.

“Based on the evidence tendered by Nallakaruppan this morning which explained that his speech was not reported correctly by the media and was twisted which, among others, included the allegation that Anwar was being a traitor of the country's finances, as per the allegation made in the affidavit by Musa on Sept 2, 1998, I am satisfied to finally withdraw this civil action.”

The settlement was recorded before Kuala Lumpur High Court Judge Mohd Zaki Abdul Wahab at about 5.10pm.

Anwar appeared for himself in this hearing because last week his previous lawyers led by N Surendran and Latheefa Koya claimed that they had difficulty meeting him.

In the morning, Nallakaruppan had denied claiming Anwar was paid RM60 million sometime in 1998 from gambling firm Magnum Corporation Bhd, where he (Nallakaruppan) was a director, claiming that his words were twisted by the media.

The MUIP president also denied that he was acting as a foreign agent and Anwar was passing him state secrets.

Besides Anwar representing himself, he was assisted by two lawyers – Shahid Adli Kamaruddin and Melissa Sasidaran – while Nallakaruppan was represented by senior lawyer Muhammad Shafee Abdullah.

The suit was filed by Anwar sometime in August 2008 before the Permatang Pauh by-election was held and is one of the longest lawsuits.

Surendran, when met outside the court room, said this proved that Anwar was no traitor and that the former opposition leader did not take any money from the gambling firm.

“The suit was filed as Anwar wants to seek vindication over such claims made for so long and we have heard it clearly in court today,” he said.

Nallakaruppan, when met outside the court room, was asked whether he is still on good terms with Anwar.

Anwar's former tennis partner replied: “Friends will always be friends.”

Nallakaruppan, now a senator, was once a PKR central committee member who failed to contest in the Ijok by-election. He subsequently left the country.