AG's Report: LTAT reserve recorded negative balance since 2020

KUALA LUMPUR: The Armed Forces Fund Board (LTAT) has been recording a negative balance in its reserve since 2020.

According to the executive summary of the AG report released today, the LTAT's reserve stood at RM0.376 billion in 2020 and RM0.285 billion the following year.

The report said the LTAT recorded RM0.338 billion last year.

The report also pointed out that there were 41 old share portfolios with an unrealised loss of RM0.662 billion yet to be taken action until Dec 31 202, which contributed to the negative balance of reserves.

LTAT, the report said, did not provide impairment for investments in Boustead Holdings Bhd and Pharmaniaga Bhd amounting to RM0.768 billion and RM0.044 billion respectively.

"In 2022, LTAT's investment in 13 subsidiaries amounted to RM5.288 billion. This amount included investments in Boustead Holdings of RM2.550 billion and Pharmaniaga of RM0.106 billion.

"LTAT did not provide impairment for investment in Boustead Holdings and Pharmaniaga, which resulted in net profit for the year and investment in subsidiaries overstated by RM0.812 billion."

The report also found that LTAT sold its shares of Perumahan Kinrara Bhd and Tanah Sutera Development Sdn Bhd worth RM0.043 billion to Perbadanan Perwira Harta Sdn Bhd (PPHSB) in 2022.

"PPHSB, in return, issued shares worth RM0.232 billion to LTAT.

"LTAT has recorded a non-cash profit of RM0.189 billion which is used as the basis for dividend payment in 2022."

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