LOKE: GOVT TO PAY LTAT ONLY RM555M

Govt not tied to deals inked between BN govt, armed forces board, says minister

THE government will pay back only RM555 million to the Armed Forces Fund Board (LTAT) for the cost of acquiring the two companies involved in the Automated Enforcement System (AES).

Transport Minister Anthony Loke said the government had no intention of paying back any other expenses borne by LTAT as the current government was not tied to the agreements inked between LTAT and the then Barisan Nasional government.

“We will sit down and discuss with LTAT. However, our position is to just pay back the capital, which is RM555 million.

“That’s our stand. The current government is not tied to any agreement entered by the previous government with LTAT,” he said yesterday.

Loke said the government had no intention to review the repayment.

“It was a bad decision by LTAT in the first place to take over the two AES concessionaires — ATES Sdn Bhd and Beta Tegap Sdn Bhd. Of course they thought there will be profit, and the former chairman tried to justify that it was a good investment.

“That is subject to LTAT members to evaluate.”

Loke said this following a statement by former LTAT chairman Admiral (Rtd) Tan Sri Mohd Anwar Mohd Nor that the current government must return the money spent by LTAT to take over the two concessionaire companies, including 12 per cent returns per annum as agreed by the previous government in November last year.

Last week, Loke questioned the previous government’s decision to ask LTAT to take over the project from the two private companies for RM555 million in what he said was a lopsided deal.

The government will take over the operations of the AES system on Sept 1, and the RM555 million will be refunded to LTAT in stages.