THE government will pay back RM555 million to the Armed Forces Fund Board (LTAT), from which funds were used to pay two companies that were running the Automated Enforcement System (AES).

Transport Minister Anthony Loke said the payments would be made gradually after discussing the matter with the Defence and Finance Ministries.

“We sympathise and have taken into consideration the welfare of the armed forces, and the cabinet today decided to pay back the RM555 million to them.

“There will be discussions with the Finance Ministry, Defence Ministry and LTAT to find ways for the funds to be paid back gradually,” Loke said in Putrajaya today.

Loke said the money was used to pay two companies that ran AES – ATES Sdn Bhd and Beta Tegap Sdn Bhd.

He said in 2015, the previous administration had ordered LTAT to take over the AES system through its subsidiary, Irat Properties, and pay the amount to both companies.

Loke added that the money was used to pay for a mere 40 cameras installed on highways across Malaysia.

“I hope the armed forces understands that the previous government used LTAT funds to pay two companies that only had 40 cameras as assets and no other assets,” he said. 

Loke earlier announced that the government would cancel all summonses issued through the AES system.

He said the Road Transport Department would take AES operations from September 1. – August 17, 2018.