He said Taufick lodged the report at Karamunsing police station on April 8 without furnishing any evidence.
"I have explained to the State Leadership Council (MPN) and Beaufort division about this serious allegation against me and they have understood and accepted my explanation," he said.
He claimed that Taufick had fabricated the allegation and lodged a police report because of dissatisfaction about his current post being challenged in the upcoming party polls on May 3 and 4.
"In other words, he has made a false police reportÉI leave it to the police to carry out investigations on the matter and take necessary action.
I have nothing to hide," he told a press conference at the party headquarters, here, Sunday.
Lajim, who won the Beaufort division's top post uncontested, was commenting on the police report lodged by Taufick that went viral in social media networks like Facebook and Twitter.
He said the Selangor government through its Menteri Besar had only channelled RM50,000 for natural disaster victims, including the flood victims.
"The money channelled to PKR Sabah reached us a month later when the floods in the affected districts like Beaufort, Sipitang and Pensiangan had subsided.
"The money is still with the party and will be available for future use to help natural disaster victims in Sabah," he said, adding that he used his own money to make contributions and aid to flood victims in Beaufort and other affected districts during the flood period.
Lajim said MPN had proposed that a report on the allegation be submitted to the party's election department and disciplinary action be taken against Taufick.
"If the party's election department finds Taufick guilty of making the allegation, Taufick's challenger for the deputy chief post in Beaufort division will automatically get the post.
"If he is found not guilty, Taufick will be allowed to contest the post in a one-on-one fight with challenger in the divisional polls early next month.
Asked whether he will file a lawsuit against Taufick for making the allegation, Lajim said he will first leave the matter to the police for investigation.
On another development, Lajim said the party has scheduled that 11 divisions will be holding their annual general meetings and casting of votes on May 3, while the remaining 15 divisions, on May 4.
He said all 26 divisions are allowed to conduct their respective annual general meetings prior to May 3 and 4, but they need to submit a two-week notice to the State party before holding the meetings.