DEFENCE Minister Datuk Seri Mohamed Khaled Nordin has reaffirmed the Defence Ministry’s (MINDEF) dedication to the restructuring of the Armed Forces Fund Board (LTAT) as outlined in its Strategic Plan 2023-2025.
The two-year strategic roadmap encompasses initiatives aimed at revamping LTAT’s business model and reshaping its shareholdings in strategic enterprises.
“I would like to reiterate the commitment of MINDEF in driving LTAT to become an organisation that contributes to the economic development of the country and guarantees the social protection of the Malaysian armed forces,” stated Khaled.
His remarks come amidst criticisms levelled at LTAT following revelations of negative balances in its reserves since 2020 as highlighted in the Auditor General’s (AG) Report 2022.
Khaled urged for prudence and cautioned against premature conclusions, attributing the negative reviews to a lack of comprehensive information.
“Claims of a financial crisis (in LTAT) happened because people didn’t properly check with us. People believe in sensational news. We wouldn’t make an announcement (on dividends) like this if LTAT did not have a strong financial position.
“In any case, ask those responsible (for the claims). Don’t listen to one side and wait a long time before asking us.”
Moreover, Khaled noted that LTAT’s reserves for 2022 were indeed positive, with the AG’s report only spotlighting one of its three reserve funds.
The minister also announced LTAT’s declaration of a 5% dividend for the fiscal year ending December 31, 2023, marking the second consecutive year at this rate, signifying a notable recovery from the lowest dividend recorded in 2018 at 2.0%.
His comments come in the wake of the AG’s scrutiny of LTAT’s diminishing investment returns in two subsidiaries coupled with concerns over the decision to pay dividends derived from non-cash profits to contributors.
Furthermore, Khaled cautioned against ill-intentioned criticisms and urged discernment when consuming news.
“In this era, news is easily accessible. Some are true, some are sentiment-driven and some are interpreted differently. For that reason, one must be cautious with everything (published). As I stated before, I believe and am confident in the new (LTAT) leadership,” he said.
Touching on the sale of Affin Bank Bhd’s shares to the Sarawak government, Khaled affirmed the proceeding of the transaction, noting LTAT’s pending approval from Bank Negara Malaysia. – April 5, 2024
