Govt. will reimburse LTAT only RM555 million for AES takeover

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Written by Syndicated News

PUTRAJAYA — Aug. 24, 2018: The government has decided that it will only pay back RM555 million to the Armed Forces Fund Board (LTAT) for taking over the Automated Enforcement System (AES) from two companies.

Commenting on a statement by former LTAT chairman Admiral (Rtd) Tan Sri Mohd. Anwar Mohd. Nor who described the amount as quite unfair and not in line with the concession agreement, Transport Minister Anthony Loke declared that the ministry is not bound by the deal signed between LTAT and the previous government. 

Loke indicated that he was willing to sit down and discuss with LTAT but insisted that the decision on the RM555 million would remain unchanged — nothing more, nothing less.

“We will not be bound by the previous government’s promises. As far as we are concerned, the cost (RM555 million) has been set.

“The government will not review the amount as it was a wrong decision by LTAT to invest in AES. They thought the investment would be profitable.  The former chairman was trying to justify that it was a good investment. (However,) let the LTAT members  be the judge,” Loke said at a press conference today.

On Aug. 17, Loke was reported as saying that the Cabinet had agreed to refund RM555 million to LTAT in phases after the money was used by the previous government to take over the AES system from Beta Tegap Sdn. Bhd. and ATES Sdn. Bhd. in 2015.

He also revealed that the RM295 million paid to ATES and RM260 million to Beta Tegap did not involve taking over a large number of assets, except for 47 cameras.

Yesterday, Anwar said LTAT was invited by the government to take over the project from the companies to supply, instal and maintain 1,093 AES cameras nationwide.

It was also reported that the previous government decided to take over the project from LTAT by paying back all its investment costs plus 12 per cent return per annum. — Bernama 



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