LTAT to provide RM87m bond for Puspahanas

Every rule is being bent to please Selangor Umno Wanita chief, says PKR’s Rafizi

PETALING JAYA: The military pension fund will provide a new performance bond of RM87 million for the controversial defence college Puspahanas, according to PKR strategy director Rafizi Ramli.

The new bond is to replace one valued at RM72.5 million, which was put up by Astancanggih Sdn Bhd but which expired last Feb 3. It will be incurred by Bakti Wira Sdn Bhd, a subsidiary of Boustead Holding Bhd, which is owned by pension fund Lembaga Tabung Angkatan Tentera (LTAT).

Rafizi told a press conference that the new bond was to cover the original project cost and about RM15 million in additional contracts given to Awan Megah Sdn Bhd, a company owned by Selangor Wanita Umno leader Raja Ropiaah Abdullah.

Awan Megah was awarded the contract for Puspahanas in 2005 in exchange for RM27 million and 80 hectares of land in Bukit Raja, Selangor.

Astancanggih, one of controversial businessman Deepak Jaikishan’s companies, agreed to provide the RM72.5 million performance bond, an amount agreed to between the Defence Ministry and Awan Megah. That bond expired when the deal between Deepak and Raja Ropiaah reached a dead end.

“Until now, the bond has not been renewed by Awan Megah and no action has been taken by the Defence Ministry against Alam Megah or Raja Ropiaah,” Raifizi said.

“It seems that the Defence Ministry will be giving the pension fund to its appointed contractor, Awan Megah, as financial assurance for the project to be completed.”

He said this went against ethical practice because Awan Megah should have been dropped from the project for breaching the agreement.

“And how can the pension fund be used to save Alam Megah so that it continues to stay in the project through bearing a new bond in exchange for the expired bond?”

Rafizi demanded that Defence Minister Ahmad Zahid Hamidi answer the question.

“He should explain to the soldiers what is so special about Awan Megah and Raja Ropiaah that financial resources from the ministry have to be used to redeem her failure.

“What makes her so special that every rule is bent for her?”

Rafizi said these points would be mentioned in court in Zahid’s defamation suit against him.