KUALA LUMPUR: The Public Accounts Committee (PAC) has raised its concerns over several Armed Forces Fund Board (LTAT)-related issues. Its committee member, Dr Halimah Ali, said it has been 10 months since the LTAT Strategic Plan 2023-2025 was halted, but until now, no alternative plan has been announced.

According to BERNAMA News Agency, Dr Halimah highlighted that this delay exposes LTAT to continued impairment, which has been ongoing for five years. She emphasized the risk posed by reliance on Boustead Holdings Berhad without a comprehensive restructuring programme, which hinders the transformation of LTAT into a sustainable retirement fund capable of generating competitive dividends consistently. Halimah shared these insights during a briefing session related to the PAC Report on LTAT at the Dewan Rakyat sitting.

Halimah also pointed out that the PAC discovered several asset sale transactions by Boustead that were not publicly announced. In the latest development, Ecoworld announced the purchase of land
owned by a Boustead subsidiary worth RM742 million, which is projected to generate a development value of up to RM4.6 billion for Ecoworld. Additionally, there are plans to sell farmland owned by Boustead Plantations Berhad in Batu Kawan, Penang to Ideal Properties Berhad.

Under the previous Boustead restructuring plan, these parcels of farmland were recommended to remain under Boustead Properties Berhad, wholly owned by LTAT, for development purposes. Halimah questioned whether the selling of these lands and assets is Boustead’s new restructuring approach to generate cash flow and reduce its debts.

The Kapar Member of Parliament expressed concern that this approach may be short-term and could negatively impact the value of LTAT’s assets, failing to address LTAT’s long-term issues. Halimah noted that this approach contrasts with the minister’s stance on the halted strategic plan, which was also described as a short-term solution.

Halimah further raised concerns about the discreet nature of the asset sale s
trategy, which lacked public transparency, differing from the publicly announced and discussed LTAT Strategic Plan 2023-2025 restructuring plan. The PAC hopes that MINDEF (Ministry of Defence) and LTAT, in follow-up proceedings next year, will provide appropriate responses to the issues raised and consider the committee’s suggestions.