Khaled: Ministry committed to restructuring LTAT

Defence Minister Datuk Seri Mohamed Khaled Nordin has given the assurance that the ministry is committed to carrying out the restructuring of the Armed Forces Fund Board (LTAT) under the Strategic Plan 2023-2025.

The two-year plan will see the restructuring of LTAT’s business model and shareholdings.

“I would like to reiterate the commitment of the Defence Ministry in driving LTAT to become an organisation that contributes to the economic development of the country and guarantees the social protection of the armed forces.”

Khaled also said people must not jump to conclusions on the negative balances in LTAT’s reserves stated in the 2022 Auditor General’s Report.

“Claims of a financial crisis (in LTAT) happened because people didn’t check with us. People believe the sensational news. We wouldn’t make an announcement (on dividends) like this if LTAT did not have a strong financial position,” he said after announcing LTAT’s five per cent dividend for the year ended Dec 31, 2023.

Khaled said this marked the second consecutive year a five per cent dividend was announced.

Last month, the auditor general flagged LTAT for diminishing investment returns in two subsidiaries. In the report, Datuk Wan Suraya Wan Mohd Radzi flagged LTAT’s decision to pay dividends derived from noncash profits to contributors.

Khaled later clarified that the reserves for 2022 were in fact positive as the report only highlighted one of its three reserve funds.

On the sale of Affin Bank Bhd’s shares to the Sarawak government, haled said it would proceed and LTAT was waiting for Bank Negara Malaysia’s approval.