LTAT & Raja Roopiah’s land deal — The Malaysian Insider

What has this year’s financial performance of the Armed Forces pension fund have to do with one of its companies buying a piece of government land allocated to Selangor Wanita Umno chief Senator Datuk Raja Ropiaah Abdullah in lieu of building defence facility?

If you go by Defence Ministe Datuk Seri Ahmad Zahid Hamidi’s logic, the Lembaga Tabung Angkatan Tentera’s (LTAT) sterling results are proof that the land deal is above board and a commercial decision.

The minister does not see anything wrong with the deal or for the matter, that Raja Roopiah’s firm has yet to complete building the facility in Putrajaya years after the deadline.

Or that his ministry has also given more contracts for additional work on the incomplete defence facility to the Wanita Umno leader.

Of course, this has nothing to do with LTAT’s financial performance. But it doesn’t mean that the deal with Raja Ropiaah stinks to high heaven.

To recap, PKR strategic director Rafizi Ramli had accused LTAT unit Boustead Holdings Bhd of being embroiled in a scandal, after revealing hidden clauses in a deal which allegedly benefited Raja Ropiaah millions of ringgit more on top of a RM160 million deal.

Boustead had announced last year a plan to buy an 80 per cent stake in businessman Deepak Jaikishan’s company, Astacanggih Sdn Bhd, for RM30 million as well as a RM130 million piece of land from Ropiaah’s firm Awan Megah Sdn Bhd.

According to Rafizi, the Ministry of Defence has awarded Awan Megah a RM15 million-worth of additional contracts through a letter dated June 26, 2012 which has been previously unannounced.

Awan Megah also was awarded 23.2 acres of land out of the original three parcels of land measuring 223.2 acres, which is potentially worth millions of ringgit. Rafizi had claimed before that the parcels of land were never transferred to Awan Megah in the first place.

A sum of RM4 million was forwarded by Boustead to a proxy named Putra Nazrain Abdul Jalil to acquire the remaining 20 per cent of Astacanggih Sdn Bhd, which was previously owned by controversial carpet dealer Deepak Jaikishan.

Boustead’s subsidiary Bakti Wira Sdn Bhd will also take care of all Awan Megah’s financial commitment to plastic manufacturer GuppyUnip Sdn Bhd in order to nullify their previous joint-venture agreement.

Yes, nothing here will impact LTAT just yet. And it can gve all LTAT contributors a 16 per cent dividend each that will total RM759.3 million,

But that doesn’t mean the Raja Ropiaah deal is a good thing for the soldiers, unlike the ridiculous assertion by Zahid.

They get pittance, while an Umno leader gets more contracts rather than being rapped for not delivering a project on time.