Gramajo was defense minister from 1986 to 1990 under Vinicio Cerezo, a civilian whose election ended a long series of military-run governments. He was sued after graduating from the John F. Kennedy School of Government at Harvard University in 1991.

``The timing (of the judgment) ... has a lot to do with my candidacy,'' with recent the scandal involving Guatemala and the CIA, and with the peace talks under way between the government and leftist rebels, the general said.

As to the allegations in the suit, ``I don't admit any of that. ... I haven't done anything wrong.''

Earlier this month, a congressman charged that a Guatemalan officer on the CIA payroll was responsible for the murders of an American innkeeper and the Guatemalan rebel husband of an American lawyer.

In the April 17 edition of The Nation, journalist Allan Nairn reported that Gramajo had been on the CIA payroll, a claim the general called ``groundless.'' He said ``never in my life'' did he accept CIA funds.