KUALA LUMPUR — April 11, 2019: Two transactions made by the previous Armed Forces Fund Board (LTAT) management did not comply with the financial reporting standards of the National Audit Department.
According to the audit report, the first transaction involved the sale of land in Cochrane and Bukit Jalil amounting to RM202.71 million which should not be taken into account in 2017 as these had not been finalised.
The second involved available-for-sale securities of RM1.6 million involving Dayang Enterprise Holdings and Sapura Energy which were not reported in the financial statements for 2017.
Chief executive officer Nik Amlizan Mohamed said the transactions could not be recognised in accordance with Financial Reporting Standards 118 relating to revenue because the criteria for revenue were not met. She spoke at a press conference at the Parliament lobby which was also attended by Defence Minister Mohamad Sabu and his deputy Liew Chin Tong.
The impact of the findings caused LTAT’s profit for 2017 to be reduced from RM662.17 million to RM370.56 million.
LTAT’s cumulative profit also dropped drastically to negative earnings of RM3.6 million compared to a positive cumulative profit of RM259.99 million previously.
Earlier in the Dewan Rakyat, Mohamad said the revised LTAT financial statement for 2017 had to be made as two errors had been found.
He also told Datuk Seri Ismail Sabri Yaakob (BN-Bera) that the final decision on the sale of the Royale Chulan Bukit Bintang Hotel will be made by the Economic Planning Unit. — Bernama