THE Defence Ministry has lodged a report with the Malaysian Anti-Corruption Commission (MACC) after a probe by a special government committee revealed irregularities and elements of corruption in the RM555 million takeover of the Automated Enforcement System (AES) by the armed forces fund.

A ministry representative was present at the anti-graft office today to hand in the findings of the Special Committee on Procurement, Government and Finances following the committee’s probe into the AES project under the previous government.

Transport Minister Anthony Loke had revealed last year that the Armed Forces Fund Board (LTAT) was ordered by the Barisan Nasional government to pay RM295 million to ATES Sdn Bhd and RM260 million to Beta Tegap Sdn Bhd to take over 40 AES cameras.

In its report, the special committee found that the AES project benefited the concession companies while placing the government at risk of incurring losses, the ministry said in a statement.

The committee “also found elements of interference by government officials, including the former prime minister and several cabinet ministers from the previous administration, which involve political interests”, it said.

“Investigations also revealed doubt regarding the (validity of the) order for the LTAT to take over the AES project as it was made in a discussion without being recorded in minutes between the former prime minister and several ministers in September 2014.

“The special investigative committee were of the opinion that the selection of the LTAT to take over the AES was an attempt to dismiss accusations that the government was attempting a bail-out.

“There exists doubts as to why the LTAT needed to pay RM555 million to take over the AES, when the original cost was RM40 million,” said the statement.

The Defence Ministry said it lodged the MACC report to urge authorities to conduct a detailed investigation into the deal which was “exceeding market prices, and had exposed the contributions of members of the armed forces to the risk of losses”.

The Pakatan Harapan government decided on August 17 that the contract for the LTAT-operated AES would not be renewed and that the operation, development, maintenance and enforcement of AES would be fully handled by the transport ministry and the Road Transport Department.

LTAT took over AES from Beta Tegap Sdn Bhd and ATES Sdn Bhd in January 14, 2015. The concession operated by LTAT was effective from January 14, 2015 until August 31, 2018. – March 1, 2019.