Mindef lodges MACC report over RM550mil payment for AES

PUTRAJAYA : The Defence Ministry has lodged a report with the Malaysian Anti-Corruption Commission (MACC) on the payment of RM550mil made by the Armed Forces Board (LTAT) for the Automated Enforcement System (AES) for speed traps.

Mindef made the report in the wake of findings by the Governance, Procurement and Finance Investigating Committee headed by former Auditor-General Tan Sri Ambrin Buang.

The report was lodged by Rafizal Ali, the special duties officer for Defence Minister Mohamad Sabu.

Rafizal said the findings concluded that the AES project was only financially beneficial to the concession companies while putting the government at risk.

The two concessionaires are ATES Sdn Bhd and Beta Tegap Sdn Bhd.

"The investigation also revealed that there were concerns over plans for LTAT to take over the AES project which was discussed but not recorded in the minutes.

"The committee also found elements of interference by the previous administration, including former prime minister and several cabinet ministers," he said after lodging the report on Friday (March 1).

Rafizal said the amount which LTAT had to pay for the AES system raised alarm as the original cost was only RM40mil.

He added that an audit firm had valued it at RM250mil.

"We hope the MACC will investigate the matter and get to the actual reason why the board had to pay so much to take over AES," he said.