KUALA LUMPUR, March 31 ― Tan Sri Khalid Ibrahim said the dismissal of a state unit's bid to reclaim the RM2.7 million he approved for seven former Mentri Besar Incorporated (MBI) officers absolved him of allegations used to force him from office three years ago.

The Shah Alam High Court rejected the MBI's lawsuit to recoup the gratuity payments the seven received after they were made redundant by the state-owned firm during the campaign triggered by current Selangor MB Datuk Seri Azmin Ali to oust Khalid.

Khalid said the decision showed that the compensation was legitimate. He was previously accused of abuse in approving the payment to the seven who included his political secretary then, Faekah Husin.

"I am thankful that the decision today indirectly cleared my name of any allegation of wrongdoing during my tenure as the mentri besar

"It is clear that the voluntary separation scheme payments given to my officers before I left … were above board," he said in a statement today.

The Bandar Tun Razak MP then predicted that Azmin's administration will contest the decision, and suggested that this would be done as a distraction from the issues surrounding the latter.

He then renewed his criticism of the Selangor government's insistence on buying out state water utilities for RM2.8 billion, saying these were only worth RM800 million.

Khalid resigned as MB in 2014 following an extended and convoluted campaign against him by his party and its allies.

Despite PKR's efforts to replace him with Datuk Seri Dr Wan Azizah Wan Ismail, Azmin was selected by the Sultan to take Khalid's place.

MBI Corporation had sued the seven former staff for the sum after alleging that the payments were beyond what they were entitled to receive.