KUALA LUMPUR – While the Armed Forces Fund Board (LTAT) does not currently place its funds offshore, it has plans to expand its investment capabilities to locations outside the country, Deputy Defence Minister Datuk Seri Ikmal Hisham Abdul Aziz told the Dewan Rakyat.
The Tanah Merah MP said that the plans are part of a risk management strategy to ensure continuous income from investments, adding that implementation of the policy will be done in stages based on relevant factors such as global stock market statistics, among others.
“There are plans for LTAT to broaden its investments to foreign nations. The main sector will be the public market to diversify investment assets,” he said while winding up debates on the Armed Forces Fund (Amendment) Bill 2022 today.
He also stressed that investment suggestions made by LTAT will go through an evaluation process involving relevant committees and an investment panel of independent panellists.
“There is no political interference that will affect the wellbeing of military members,” the Bersatu politician said.
The minister was responding to opposition leader Datuk Seri Anwar Ibrahim (Port Dickson-PH) who had earlier called on Putrajaya to explain the rationale behind LTAT allegedly placing their funds overseas.
He said that the act, if true, would be akin to the economic mismanagement detailed in the Pandora Papers, which revealed financial information on 35 current and former world leaders, and over 330 politicians and public officials in 91 countries and territories.
Meanwhile, Ikmal Hisham also disclosed that in 2019, LTAT received RM669 million in compensation from the government for operation costs of the Automated Enforcement System (AES).
“RM555 million was received in August while another RM114 million was obtained in November the same year,” he said, confirming the matters raised earlier by Anthony Loke Siew Fook (Seremban-PH).
The DAP secretary-general had previously reminded the lower House that after Pakatan Harapan took over Putrajaya, it had suggested for the RM555 million to be returned and for the AES contract to be ceased, while cancelling RM435 million’s worth in summons.
Citing a Public Accounts Committee report released today that detailed the Barisan Nasional government’s plan to bail out the concessionaires of AES in 2015 using LTAT, Loke called on army personnel to judge for themselves which administration cared for their wellbeing. – The Vibes, August 1, 2022
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