Prime Minister Anwar Ibrahim said he wants a “full report” on the matter to ensure that any weaknesses identified can be corrected.
He said the relevant ministries and agencies will also be given a chance to explain.
“Although this is from the 2022 report, we want to make sure that we can improve on our weaknesses and take action where needed,” said Anwar after performing Friday prayers in Putrajaya.
“They have been given a notice to submit a full report in two weeks, and the Cabinet will deliberate on it. What is important is that we need to stop the rot.”
Released on Wednesday, the report found that Felda recorded RM1 billion in losses in 2022, nearly double the RM545 million in losses recorded the year before.
Felda also owed RM8.66 billion to external institutions as of 2022, a slight decrease from the RM8.8 billion owed the year before.
The auditor-general said Felda had been “highly dependent” on financial assistance from the federal government, advising it to chart a clear direction towards operating without further financial assistance from Putrajaya.
The report also said LTAT has had a negative reserve balance since 2020 and unrealised losses of RM0.662 billion from 41 old share portfolios.
Public Accounts Committee chairman Mas Ermieyati Samsudin said yesterday the committee will summon LTAT’s top management to its proceedings over concerns about its financial situation.
She said LTAT’s negative reserves raises questions as to whether the armed forces pension fund is able to pay dividends to its contributors.
LTAT reassures public about reserve concerns
In a statement today, LTAT said its negative reserve refers to the other comprehensive income (OCI) reserve, which is just one facet of its combined reserve.
LTAT said its combined reserve is composed of three components: retained earnings, reserve fund, and OCI reserve which, if combined, reflects its financial stability.
It said its reserve fund remains constant and is set at 2% of contributors’ account balance, providing a “foundation for its financial security”.
“Despite the OCI reserve showing a deficit, the combined reserve at the end of financial year 2022 amounts to a net positive balance of RM160 million, representing an improvement from the preceding year,” it said.
“This net positive reserve position leads to a book value solvency of above 100%, affirming that our net assets at book value surpasses the total contribution by our members.”