The Straits Times' Internet edition said the leaders sought judgement against Singapore Democratic Party (SDP) chief Chee Soon Juan, who had accused them of lending US$10 billion to former Indonesian dictator Suharto.

Chee has apologized publicly and admitted making a false accusation during the campaign for the November 3 general elections, which were won overwhelmingly by the ruling People's Action Party (PAP).

But Chee, who ran unsuccessfully for a parliamentary seat, has chosen to defend himself rather than offer compensation which, by Singapore law, will be finally set by the courts.

The Straits Times report said Goh and Lee, the former prime minister, are now entitled to seek judgement because Chee had already admitted publicly that he had defamed them and apologized as well.

The leaders' applications for "aggravated damages" will be heard in the High Court on January 14, the report said.

During the hearing, the court is expected to hear arguments on whether the judgment should be given to Goh and Lee. The amount of damages to be paid will be decided at a later date.

Chee will have three weeks to reply to the latest application, it added.

Legal sources expect the two leaders to be awarded substantial damages based on their stature and on similar cases in the past.

Leaders of the ruling party over the years have won millions of dollars from opposition politicians who questioned their integrity.

The PAP won 82 of the 84 seats in the last elections, extending its unbroken rule since 1959 by another five years.

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