Mat Sabu: Action will be taken if irregularities found in LTAT

KUALA LUMPUR: Defence Minister Mohamad Sabu today denied reports that the Armed Forces Fund Board (LTAT) was next on Putrajaya’s purge list, but said action would be taken if there were any irregularities.

“There is no cleansing going on. But if there are irregularities, they will be attended to by Tan Sri Ambrin Buang,” he told reporters at the Parliament lobby, referring to the former auditor-general.

Ambrin now chairs the government’s special investigation committee on procurement, governance and finance. Set up in May, it is now scrutinising the defence ministry following a request by Mohamad.

Mohamad, who is also known as Mat Sabu, was asked to comment on a story by FMT which quoted a well-placed source as saying that the LTAT was next on Putrajaya’s purge list.

LTAT manages contributions made by military personnel. It made a profit of RM667 million last year.

The source told FMT that the fund held about RM9 billion in contributions from members.

“That’s too big for Putrajaya to overlook in its clean-up process,” he said in reference to the ongoing operation to rid government-linked organisations of individuals perceived to be too close to former prime minister Najib Razak.

He said the axe might fall on LTAT’s CEO, Lodin Wok Kamaruddin, and some of his lieutenants.

The source also said Lodin had so far warded off attempts to remove him from LTAT.

Lodin was once chairman of 1MDB, the troubled state fund alleged to have squandered billions of ringgit through various alleged misdeeds.

At present, he is also group managing director of LTAT-controlled Boustead Holdings, a government-linked company with RM17 billion in assets.