An Orange Order spokesman condemned the remarks as "tired old mantra from a convicted terrorist, entirely without substance".
He said: "Sinn Fein are masters of propaganda and one of their big tricks is to tell a big lie and keep on repeating it.
"We condemned terrorism when Mr McGuinness and his cohorts were actively involved in the IRA and continue to unreservedly oppose it today.
"The Orange Institution have always stood firm against attacks from the republican movement. During the height of the Troubles these attacks included the brutal murder of over 300 of our members and over 300 arson attacks on Orange halls.
"Where physical violence failed in the past, so too will verbal attacks fail now."
He added: "The Orange Institution takes its own decisions, applies its own decisions and stands by its own decisions.
"We will continue to speak out and act for what we believe is in the best interests of the Protestant and pro-Union community in Northern Ireland."