Pay back LTAT all that is owed for AES takeover, says fund’s former chairman

(The Star) – The government should repay the Armed Forces Fund Board (LTAT) all the money it forked out to take over the Automated Enforcement System (AES) project from the two concessionaires, the fund’s former chairman said.

This figure should include the promised 12% return and other AES- related expenses incurred to date, as per the agreement with the previous government, Admiral (Rtd) Tan Sri Mohd Anwar Mohd Nor said in a statement on Thursday (Aug 23).

Explaining LTAT’s involvement in the AES project, he said in 2014 the fund was invited by the previous administration to take over ATES Sdn Bhd and Beta Tegap Sdn Bhd, which were the two concessionaires of the project.

He said after due diligence was conducted, the project was found to be commercially viable with a strong double-digit return on investment for LTAT, besides creating employment opportunities for army veterans and reducing road accidents.

The then government had also agreed to repay LTAT’s investment cost in the AES project with a 12% return per annum, he added.

He said it would, therefore, be “quite unfair” to LTAT if the government decides to pay back the money spent by LTAT to acquire the two companies without paying the 12% return and other AES project-related expenses incurred to date.

“The flip-flopping of decisions on the AES project by the previous government should not impact the return to LTAT of an investment which was taken on with due commercial considerations,” he said.

He added that LTAT has been providing employment opportunities for its veterans and looking after the welfare of its members.

“For the record, LTAT has been paying an average of 11.3% per year dividend to its members and has been serving Armed Forces personnel for the last 46 years.

“In addition, to date LTAT has also spent RM428.6 million on various Corporate Social Responsibilities (CSR) programmes including giving scholarships, subsidising affordable houses built and sold to Armed Forces personnel and veterans,” he said.

Last Friday (Aug 17), Transport Minister Anthony Loke revealed that the government used RM555mil of LTAT’s money to pay ATES Sdn Bhd and Beta Tegap Sdn Bhd for the takeover.

The National Patriots Association (Patriot) had also urged for a probe over reports that funds from LTAT had been used to pay the two concessionaires.