In rubbishing Rafizi’s claims, LTAT chairman Mohd Anwar Mohd Nor clarified that gratuity payments had nothing to do with a project to relocate eight air bases from Sungai Besi to a location called Bandar Malaysia and upgrading them there.

“Rafizi’s attempt to link the project to the gratuity payments is malicious.

“His statement is not only false, it is confusing,” Mohd Anwar said in a statement.

1MDB, he added, had completed its payments for the project, which LTAT received via its subsidiary, Perbadanan Perwira Harta Malaysia (PPHM).

Mohd Anwar said the board would now discuss with its lawyers the next course of action as Rafizi’s statement had affected LTAT’s reputation and credibility.

He also revealed that LTAT had already paid its members the gratuity in full.

Yesterday, Rafizi had in Parliament claimed delays in gratuity payments to non-pensionable veteran soldiers could be a result of dealings between the LTAT and 1MDB.

Rafizi noted that LTAT, via PPHM, was the turnkey contractor that took over 1MDB’s responsibility of moving the air bases.

The contract is worth RM2.1 billion, as announced by 1MDB in April 2013.