In a press conference from next door South Africa, Khama denied the findings in the report describing them as part of a smear campaign by the government.
The said report claimed the former president, other top government officials at the time and a South African business associate had embezzled billions of dollars.
The anti-graft agency said the accused persons had set up bank accounts in Hong Kong and South Africa in order to finance terrorism.
Khama respected ruling Botswana Peoples Party, BDP, tradition of handing over power to his successor Eric Masisi a year to the 2020 general elections. He, however, clashed with Masisi months after stepping down over certain policy positions.
In what became a threat to the BDP going into the vote, Khama openly backed the opposition candidates and campaigned against the ruling party.
The party, however, won a first-round victory in the polls whiles maintaining their parliamentary majority. Khama has since been on the quiet till the corruption allegations surfaced.