Lawyer Nasar Khan, representing Mohamad who is popularly known as Mat Sabu, said his client had decided to retract his statement made in July 2016 during a protest in George Town, Penang, on the Malaysian Anti-Corruption Commission’s (MACC) arrest of then-chief minister Lim Guan Eng for corruption.
“My client agreed to retract his statement, and the plaintiff (Rahim) withdrew his suit in court.
“Both of them have agreed to resolve the issue,” Nasar said after meeting High Court judicial commissioner Faizah Jamaludin.
Rahim, who was Melaka chief minister from 1982 to 1994, filed the suit against Mat Sabu in December 2016, claiming the Amanah president had made disparaging remarks to lower his esteem before the general public.
He said the rape claim was false and that he was never prosecuted for such wrongdoing.
The rape claim also prompted Rahim to resign from his chief minister post in 1994.
He recently alleged on Facebook that he was the victim of a conspiracy to cut him off from office.