PAC fears LTAT strategic plan delay can hinder transformation

 The Public Accounts Committee (PAC) has raised concerns over several Armed Forces Fund Board (LTAT)-related issues.

Its committee member, Dr Halimah Ali said it has been 10 months since the LTAT Strategic Plan 2023-2025 was halted, but until now no alternative plan has been announced.

“This delay exposes LTAT to continued impairment which has been going on for five years.

“Exposure to the risk of dependence on Boustead Holdings Bhd without a comprehensive restructuring programme hinders the transformation of LTAT to become a sustainable retirement fund and ability to generate competitive dividends consistently,” Halimah (above) said during the briefing session related to the PAC Report on LTAT at the Dewan Rakyat sitting today.

Halimah added that the PAC also found that several asset sale transactions were carried out but not publicly announced by Boustead.

She said that in the latest development, Ecoworld announced the purchase of land owned by Boustead’s subsidiary worth RM742 million, which is set to generate a development value of up to RM4.6 billion to Ecoworld, in addition to plans to sell farmland owned by Boustead Plantations Bhd in Batu Kawan, Penang to Ideal Properties Bhd.

“Under the Boustead restructuring plan that was halted, 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 lands and assets Boustead’s new restructuring approach to generate cash flow and reduce its debts?” she said.

The Kapar MP said the approach is short-term and will affect the value of LTAT’s assets, adding that it will not solve the fund’s problems in the long term.

Halimah said this is contrary to the stance taken by the minister regarding the strategic plan that was halted, which was also described as a short-term solution.

“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 that the Defence Ministry and the LTAT, in follow-up proceedings next year, will be ready with the appropriate response regarding the issues raised, besides the suggestions made by the committee,” she said.

- Bernama