KUALA LUMPUR – The Parliament’s Public Accounts Committee (PAC) will be hauling up the embattled Armed Forces Fund Board (LTAT) and its top leadership over its negative reserves between 2020 and 2022.
PAC chairperson Datuk Mas Ermieyati Samsudin said the committee is concerned over LTAT’s negative reserves and questioned its ability to pay dividends to its 122,935 contributors.
The 2022 Auditor-General’s Report outlined that LTAT’s reserves remained consistently negative – amounting to RM376 million in 2020, RM285 million in 2021, and RM338 million in 2022.
In a statement today, Mas Ermieyati said PAC will call up LTAT’s immediate past chairman, chief executive officer, and senior strategic director, among others.
“This is a critical issue involving 122,935 contributors (as of March 13, 2023) who are armed forces personnel.”
The PAC does not discount summoning Defence Minister Datuk Seri Mohamed Khaled Nordin, who took over the portfolio after the cabinet reshuffle last December. His predecessor is Datuk Seri Mohamad Hasan.
The proceeding is expected to take place after Hari Raya Aidilfitri.
LTAT is a statutory body that manages the pension fund for officers and members of other ranks of the Malaysian Armed Forces and veterans.
As for the other two troubled agencies highlighted in the A-G’s Report – Felda and PR1MA – the PAC will decide whether to call them up for questioning later.
Yesterday, the A-G’s Report highlighted that LTAT had 41 old stock portfolios with an unrealised loss of RM662 million as of December 31, 2022 that have not yet been addressed, contributing to the overall negative reserve balance.
The report also noted that in 2022, LTAT invested RM5.288 billion in 13 subsidiaries, including RM2.550 billion in Boustead Holdings Bhd and RM0.106 billion in Pharmaniaga Bhd.
The recent resignations of the top three in LTAT would not negatively impact or disrupt operations and services, said Khaled last month.
It was previously reported that the restructuring of LTAT had been halted following this change. – March 7, 2024