LTAT: No army funds used in Boustead deal
Chua Sue-Ann, fz.com
Army savings fund Lembaga Tabung Angkatan Tentera (LTAT) has defended the recent acquisitions by its subsidiary Boustead Holdings Bhd as a commercially sound decision that does not utilise any army funds.
In a statement today, Lembaga Tabung Angkatan Tentera (LTAT) chairman Admiral (Retired) Tan Sri Mohd Anwar Mohd Nor maintained that Boustead’s corporate exercise was based on commercial reasons and not other considerations.
LTAT’s statement was issued to assuage public criticism over moves by Boustead’s wholly-owned subsidiary Bakti Wira Development Sdn Bhd to buy an 80% stake in Astacanggih Sdn Bhd for RM30 million.
After the share purchase, Bakti Wira and Astacanggih will then purchase 200 acres of land in Bukit Raja, Klang for RM130 million from Awan Megah (M) Sdn Bhd, a company owned by Selangor Wanita Umno chief Raja Datuk Ropiaah Raja Abdullah.
Mohd Anwar also stressed that LTAT was not involved in the purchase of the 80% stake in Astacanggih, a company controlled by controversial businessman Deepak Jaikishan, even though LTAT holds a 60.7% stake in Boustead.
Mohd Anwar also sought to clarify that LTAT’s funds were not used in these two contentious transactions, as alleged by the opposition and some veteran servicemen.
According to Mohd Anwar, Boustead would fund its share purchase of Astacanggih by using profits generated from previous property development projects.
Astacanggih meanwhile will take on borrowings to fund the acquisition and development of the Bukit Raja land since Astacanggih currently has no borrowings, Mohd Anwar said.
Retired Royal Malaysian Air Force general Datuk Abdul Hadi Abdul Khatab had earlier called on the army generals sitting on LTAT’s board to speak out against the contentious deals.
Abdul Hadi, who heads PKR’s security committee, had also alleged that the RM160 million deal was merely for “private gain” and does not benefit current and former servicemen contributing to the fund.
Mohd Anwar said that LTAT will closely monitor all its investments, including its stake in Boustead, to ensure that it brings the best returns for LTAT’s contributors who are members of the Malaysian armed forces.
“LTAT has full faith that the land development project by Boustead will be as successful as Boustead’s other projects while being able to provide affordable housing for servicemen,” Mohd Anwar said.
Mohd Anwar also said the transactions will help expand Boustead’s landbank and bring profits for Boustead in the long term.
Boustead has pointed out that the deal will enable it to expand its existing landbank in Klang since Awan Megah’s 200-acre parcel was adjacent to Boustead and LTAT’s 700 acres in that area.
