The claims - which if true would imply Malaysia compromised its national sovereignty - are among the several charges Mahathir has leveled in recent months against the government in a raging political row.

Mahathir's attacks, mainly directed at his hand-picked successor Prime Minister Abdullah Ahmad Badawi, initially raised concerns about the country's political stability. But Abdullah's Cabinet and the ruling United Malays National Organization party have rallied around him to allay those fears.

In a written statement to Parliament on Thursday, Foreign Minister Syed Hamid Albar said the demand for sand and air space were actually made by Singapore during negotiations to build a second bridge between the two countries.

Malaysia rejected the demands, and the bridge project - a Mahathir brainchild - was scrapped earlier this year by Abdullah.

Mahathir was furious at the decision, and accused the government of lacking courage and bowing to Singapore, a country for which his deep dislike is well known.

Syed Hamid said that Singapore's Senior Minister Goh Chok Tong had raised the two demands during a meeting with Abdullah on March 1, 2005.

"Both these issues were raised as political quid pro quo based on the principles of equitable interests," Syed Hamid said. In fact, the two issues were discussed even during bilateral negotiations from 1998 to 2002 when Mahathir was still in power, he said. Mahathir retired in October 2003.

Mahathir had claimed that by offering to sell sand and give Singapore over-flight rights, Malaysia was willing to compromise its national integrity and sovereignty. He, however, did not provide any evidence to back his allegations.

He has also been critical of Abdullah's decision to scrap many infrastructure projects he initiated. Mahathir's fear appears to be that Abdullah is dismantling the legacy he built up during 22 years in office as the longest service Malaysian prime minister.

Abdullah has not responded directly to Mahathir, partly out of respect for the 80-year-old statesman's immense stature. Instead, he has asked his ministers to reply, and Syed Hamid's statement is the first installment in a series of rebuttals expected from the government in coming weeks.

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