KUALA LUMPUR: Defence Minister Datuk Seri Mohamed Khaled Nordin has passed the buck to the acting chief executive of the Armed Forces Fund's Board (LTAT) to answer the departure of its latest senior executive.
Khaled said he was not involved in the day to day running of the armed forces pension fund.
However, when pressed that the string of resignations were caused by the senior officials not aligning with his "style" of administration, the new minister said:
"My only instruction (to the LTAT) was that every decision must be inclusive… (they must) discuss with all stakeholders and any major changes must go through the Cabinet.
"That was my only message (to them)," he told New Straits Times when asked to comment whether the exodus of three senior officials of the fund reflected that there was an ongoing retaliation among its leadership.
It was reported that the board's senior director of strategy, Dayana Rogayah Omar, 39, was the latest to tender her resignation.
Her resignation makes for three in the space of a month at the pension fund for 120,000 serving members of the Malaysian Armed Forces, after Khaled decided to put LTAT's Strategic Plan 2023-2025 on hold.
Dayana's impending departure will follow that of chief executive Datuk Ahmad Nazim Abd Rahman on Jan 31 and chairman General Tan Sri Raja Mohamed Affandi Raja Mohamed Noor on Feb 8.
Ahmad Nazim's resignation letter to the defence minister sighted by Business Times expressed concern that the decision to put the fund's strategic plan on hold would shorten the runway for the execution, and present a significant risk to the balance sheet of LTAT, besides impacting its ability to meet the minimum dividend target for 2023.
The plan under the stewardship of Ahmad Nazim was to reposition LTAT as a retirement fund just like the Employees Provident Fund (EPF).
In an exclusive interview in the inaugural copy of the relaunched Business Times last year, he had said the goal was to provide sustainable dividends to its members, through greater exposure of assets and investments internationally, among others.
Some key SUSTAINABLE25 targets included achieving RM15 billion of AUM by 2025 and liquid assets of more than 60 per cent from about 20 per cent now.
A major part of the restructuring exercise is turning around the Boustead group of companies which makes up about 50 per cent of LTAT's investments.
Boustead Heavy Industries Corp Bhd still owns a 20 per cent interest in littoral combat ship contractor Lumut Naval Shipyard Sdn Bhd, formerly known as Boustead Naval Shipyard Sdn Bhd.
Khaled, in acknowledging the resignation of Ahmad Nazim and Raja Mohamed Affandi, exclusively told Business Times on Feb 11 that LTAT was resolutely steering through this transitional phase with operations proceeding seamlessly.
He added that the decision-making authority rests within the domain of LTAT, where any successor will be obliged to adhere to the mandates prescribed by the government.
"As the Minister of Defence, I am meeting all stakeholders, seeking their perspectives on the best course of action regarding LTAT and its affiliated entities' plans. Simultaneously, I am looking at LTAT's plans and assessing the potential consequences on the LTAT ecosystem, all with the objective of benefitting its shareholders," he said.
Meanwhile, Pharmaniaga Bhd today (Feb 19) announced that Dayana resigned as an alternate director of the company effective Feb 14.
The board of Pharmaniaga received the resignation letter on Feb 16.
Dayana, was appointed alternate director for another LTAT nominee, Mohammad Ashraf.
Practice Note 17 (PN17) company Pharmaniaga submitted its regularisation plan for the company to Bursa on Nov 29, 2023.
On Feb 1 this year, the company in its Bursa filing, said it was preparing applications in relation to the regularisation pan and will submit the application to Bursa for approval in due course.
Pharmaniaga fell into PN17 status after in February 2023 after posting a net loss of RM654.39 million in the fourth quarter of financial year 2022, following RM552.3 milllion provisions for unsold Covid-19 vaccine stock.
A PN17 company is a listed company that does not have a core business or has failed to meet the minimum capital or equity requirements and shareholders' funds.