PETALING JAYA: The National Patriots Association (Patriot) today questioned a former Armed Forces Fund Board (LTAT) chairman’s defence of the body’s involvement in the Automated Enforcement System (AES), saying the explanation raises more questions than answers.
In a statement, Patriot noted that no current member of the LTAT board of directors had responded to the announcement a week ago that the AES project was cancelled due to its lopsided contract.
Patriot president Brig Gen (Rtd) Mohamed Arshad Raji noted Admiral (Rtd) Mohd Anwar Mohd Nor’s statement that LTAT decided to take over the AES after “a thorough study and due diligence” and after the project was deemed commercially viable “with a strong double-digit return on investment for LTAT”.
He also noted Mohd Anwar’s claim that the project would provide employment opportunities for veterans.
However, he asked how many veterans had been employed since LTAT acquired the AES project in 2015.
He also questioned the due diligence involved in acquiring the two companies originally awarded the contract, ATES Sdn Bhd and Beta Tegap Sdn Bhd.
“What kind of due diligence was there for acquiring the two companies with assets of only 47 cameras at RM555 million, or RM11.8 million a camera, when the previous companies paid only a quarter million each?” he asked.
Asking whom LTAT had paid the RM555 million to, he questioned how relying on RM16 per summon issued could help recover the vast sum of capital outlay.
“Calling the original contractual agreement inked in 2012 appalling is an understatement,” he said. “The term ‘stupidity’ as mentioned by our prime minister concerning the previous administration negotiating contracts and deals with foreign entities is more befitting.”
He added that it was unwise of LTAT to enter into the agreement “late” when the original concessionaires had “already made their pile – unless, of course, there was another agenda”.
“The current LTAT board of directors must speak up immediately or take responsibility for the whole ignominious dereliction of duty and resign,” he said.