KUALA LUMPUR: The Armed Forces Fund Board (LTAT) will have to answer to the Public Accounts Committee (PAC) after it was revealed that it had accumulated huge losses over the last few years.
The Auditor-General’s Report found that LTAT’s reserves were in the negative with RM376mil in 2020 and RM258mil in 2021. In 2022, the figure was RM338mil.
The proceedings will begin after Hari Raya with the questioning of three of the highest officials who have resigned, including the former LTAT chairman, former CEO and former senior strategic officer.
The PAC may also call up the Defence Minister.
“Although the Auditor-General had listed three agencies for the PAC to concentrate on, namely Felda, LTAT and Perbadanan PR1MA Malaysia (PR1MA), PAC has decided to look into LTAT first,” said its chairman Datuk Mas Ermieyati Samsudin.
The A-G’s Report also said 41 of LTAT’s old share portfolios – with an unrealised loss of RM662mil – have seen no action, contributing to the negative balance.
The report also said LTAT did not provide investment impairments – losses that cannot be recovered – in Boustead Holdings Bhd and Pharmaniaga Bhd, amounting to RM768mil and RM44mil, respectively.
“PAC is very concerned with LTAT’s financial status after the revelation that its reserves are negative, raising questions on its ability to pay dividends to contributors,” she told a press conference in Parliament yesterday.
“The committee is not ruling out the possibility of calling up the Defence Minister as the issue is very critical and involves 122,935 contributors (across) all Armed Forces,” she said.
Mas Ermieyati later clarified that the defence minister who will be called up is the “current one”.
The post is now held by Datuk Seri Mohamed Khaled Nordin.
On whether previous defence ministers would be summoned, she said it would “depend on the proceedings”.
“If we think we need to call any parties that may be responsible, we will call (them) for the proceedings.”
Mas Ermieyati said the committee is also looking at HRD Corp, the multi-lane free flow project and the Foreign Workers Centralised Management System.
Proceedings for Felda and PR1MA will commence after the LTAT hearing, she added.
On another note, Mas Ermieyati said that seven PAC reports, including three progress reports, will be tabled in the first meeting of the current Parliament session.
