LTAT initiates legal action, rebuts Rafizi’s claims
Chairman of Armed Forces Fund Board says payments by 1MDB to PPHM were fulfilled on schedule
(FMT) – The Armed Forces Fund Board (LTAT) has initiated legal action against PKR lawmaker Rafizi Ramli for allegedly issuing malicious and slanderous statements on the board’s financial standing.
Its chairman, Mohd Anwar Mohd Nor, said Rafizi’s claim that gratuity payments to 110 retired army men had been delayed due to LTAT’s financial woes, was done with a view to impact the board’s good reputation and credibility.
“Given that there is no truth in Rafizi’s allegations, LTAT has commenced legal action against him,” said Mohd Anwar in a statement issued last night.
He rebutted the Pandan MP’s claims made during a press conference in Parliament on Thursday that LTAT’s finances were affected by arrears incurred in the deal between its subsidiary Perbadanan Perwira Hartanah Malaysia (PPHM) and 1Malaysia Development Berhad (1MDB).
Rafizi, in the attempt to back his allegations, had claimed that at the end of LTAT’s financial year of Dec 31, 2014, it recorded a cash balance of only RM561 million. He also said this amount was much lower than the balance of RM1.117 billion recorded just a year prior.
“It is unreasonable and illogical to compare the sum of gratuity payments made throughout the year against the cash balance at the end of 2014.
“Our year-end balance for 2014 of RM561.5 million was achieved after all payments were made, including payments to contributors who made withdrawals during the year, up to the reporting date.
“In 2014, total gratuity payments paid out to members who have completed their service with the armed forces was RM982.9 million. For the 2014 financial year, LTAT also recorded a profit of RM1.015 billion, its highest since its inception,” Mohd Anwar explained.
He added that the balance was also recorded after paying 15% dividend and RM19 million on its corporate social responsibility efforts.
Mohd Anwar also referred to Rafizi’s second allegation that LTAT’s financial strain was caused by the advances it had to provide to PPHM due to the arrears owed by 1MDB.
He said PPHM was a wholly owned subsidiary corporation of LTAT which was undertaking a number of significant high value infrastructure as well as property development projects which included the construction of 2,000 units of affordable housing in Bukit Jalil, Kuala Lumpur.
“Hence, as with all our subsidiary corporations and as normal course of business, from time to time we inject working capital into our subsidiary corporations, including PPHM.
“To date, payments by 1MDB to PPHM have been fulfilled on schedule and PPHM being the turnkey contractor for 1MDB on the PUKL project has in turn paid all its subcontractors on amounts due as per contract.
“Moreover, we would like to stress that LTAT’s accounts were audited by the National Audit Department and tabled in Parliament,” he said.
He also rubbished Rafizi’s claim that 110 LTAT members had yet to receive their gratuity payments. According to Mohd Anwar, checks conducted showed that payments had been made to 70 of the members listed by Rafizi.
Payment to one of the retired military personnel Rafizi listed was made over nine years ago, while the remaining 69 were paid between March 16, 2016 and April 4, 2016 within 24 hours of LTAT receiving complete documentation from the Army Salary Management Department (UGAT), Mohd Anwar clarified.
He added that one of the listed members had failed a fingerprint verification process and was contacted regarding the problem.
Documents of another 23 members were received by the UGAT on April 4 this year, while documents for the other 16 have yet to be received.
He reiterated that all gratuity payments to members who have concluded their service with the armed forces have and will continue to be made within 24 hours of LTAT receiving the completed and approved documents from UGAT.
