Don’t worry, defence ministry tells LTAT contributors after AES contract ends


PETALING JAYA: The defence ministry has given an assurance that it will protect the interest of contributors to the Armed Forces Fund Board (LTAT) following the termination of the LTAT-operated Automated Enforcement System (AES) contract.

It plans to discuss issues which may arise, including the legal and financial implications based on contractual obligations, with the transport ministry, finance ministry, LTAT, and the Attorney-General’s Chambers.

“Because contributors to LTAT are members of the armed forces, the ministry of defence assures that the interest of the contributors (to the fund) will be taken into account, following the contract termination,” it said in a statement.

Commenting on calls in the social media for LTAT to be investigated over the AES contract, the statement said the ministry was open to any inquiry by the authorities if there were governance issues related to LTAT’s investment.

The government decided on Aug 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 Jan 14, 2015. The concession operated by LTAT is effective from Jan 14, 2015 until Aug 31, 2018.