Speaking to reporters in Petaling Jaya, Lim said that it was "impossible" that an imam (leader of the congregation) would do such a thing.
He said that his officers had been sent to investigate the matter and found no evidence of Umno's claims.
"If there was really an imam who said this, then there is a real agenda against us. We will find this person and sack him," he said.
"This is an evil lie by Umno to turn the people against us," he added.
Speaking to reporters in Penang today, Penang Umno chairperson Ahmad Zahid Hamidi had claimed that the name-switching had occured last week at several mosques at Tasek Gelugor, Permatang Pauh and Jelutong.
This would constitute an insult to the Conference of Rulers, said Zahid after chairing a meeting in Kepala Batas, reported Bernama.Zahid: Lim should not distribute tithes
Ahmad Zahid said no police report had been made so far but there was sufficient evidence pertaining to the matter.
He also questioned the presence of the chief minister at the distribution of tithes, saying the event should by right be performed by a Muslim leader.
"Although the intention of the state government may be to portray him (the chief minister) as a flexible individual, there could be a hidden agenda with a political motive," he said.
Ahmad Zahid said he was also notified of a state constituency service centre which allegedly used the collections from a Ramadan bazaar.
He said the collections from a Ramadan bazaar set up on mosque reserve land should be used by the mosque and not for any political activity.
"The Penang government should be more sensitive in the matter of Islamic affairs," he said.
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