The Public Accounts Committee said land and asset sales will not solve LTAT’s problems in the long term. (LTAT pic)
PETALING JAYA: No alternative plan has been announced since the Armed Forces Fund Board (LTAT) Strategic Plan 2023-2025 was halted 10 months ago, says the Public Accounts Committee.
During a briefing session on the PAC’s report on LTAT at the Dewan Rakyat sitting today, PAC member Dr Halimah Ali said this gap exposes LTAT to the continuance of its impairment which has been going on for the last five years.
“Exposure to the risk of dependence on Boustead Holdings Bhd (which is wholly owned by LTAT) without a comprehensive restructuring programme hinders LTAT’s transformation into a sustainable retirement fund and its ability to generate competitive dividends consistently,” Bernama reported her as saying.
She said the PAC also found that several asset sale transactions were carried out but not publicly announced by Boustead.
Halimah said that in the latest development, Eco World Development Group Bhd announced the purchase of land owned by Boustead subsidiary Mutiara Balau Sdn Bhd worth RM742 million, which is set to generate development value of up to RM4.6 billion for Eco World.
The Edge reported her as saying the PAC was informed that LTAT plans to sell farmland owned by Boustead Plantations Bhd in Batu Kawan, Penang, to Ideal Properties Bhd.
“Under the halted Boustead restructuring plan, both these parcels of farmland had been recommended to remain under Boustead Properties Bhd, which is wholly owned by LTAT, for development purposes.
“Is the selling of these land and assets Boustead’s new restructuring approach to generate cash flow and reduce its debts?” she said.
Halimah, who is the Kapar MP, said this approach is short-term, will affect the value of LTAT’s assets and will not solve the LTAT’s problems in the long term.
“What is of more concern (is that) this asset sale strategy was done discreetly without public knowledge. This differs from the restructuring plan under the LTAT Strategic Plan 2023-2025, which was publicly announced and discussed.
“As such, the PAC hopes the defence ministry and LTAT will be ready with the appropriate responses in follow-up proceedings next year to the concerns raised, besides the suggestions made by the committee,” she said.
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