THE Armed Forces Fund Board (LTAT) must account for its RM555 million acquisition of two automated enforcement system (AES) concessionaires whose lopsided contracts have been terminated by the government.

The National Patriots Association said the current LTAT board of directors must speak up to denounce the scandal or take responsibility and resign.

The fund had failed its duty to ex-servicemen by getting involved with the concessionaires in a “stupid” agreement in 2012, Patriot president Brig-Gen (rtd) Mohamed Arshad Raji said in a statement today.

The previous Barisan Nasional administration invited LTAT to take over the two companies and start operations in 2015.

“Indeed, calling the original contractual agreement inked in 2012 appalling is an understatement. The term ‘stupidity’, as mentioned by our prime minister concerning the previous administration negotiating contracts and deals with foreign entities, is more befitting,” he said.

Patriot wanted to know what sort of due diligence was undertaken before entering the deal to acquire 47 AES cameras at RM11.8 million each, when previous companies paid only RM250,000 each.

LTAT must also state who and which company were paid the RM555, Arshad added.

The concessionaires made RM16 for each summons issued which, Arshad said, made it impossible to recoup LTAT’s capital outlay.

The investment also did not benefit many ex-servicemen, since LTAT promised that the deal would result in jobs for veterans.

Transport Minister Anthony Loke a week ago revealed the lopsided deal between AES concessionaires, Ates Sdn Bhd and Beta Tegap Sdn Bhd, with LTAT to acquire their assets for issuing speeding summonses.

As such, Putrajaya decided to cancel the contract and refund RM555 million to LTAT.

Unpaid summonses amounting to RM435 million were also waived.

“There have been much grouses among veterans and serving personnel. The frustration has grown louder but not a squeak is heard from any current member of the LTAT board of directors.” – August 24, 2018.