Lembaga Tabung Angkatan Tentera (LTAT) has threatened to take legal action against PKR lawmaker Rafizi Ramli for his statement that the fund has issued the lowest dividend - six percent - in 2015.

Rafizi is said to have made the statement on his Facebook post on July 24, with the title "Dividend 6% Yang Diumumkan oleh LTAT bagi 2015 Adalah Paling Rendah Sejak 1973" (Six percent dividend announced by LTAT in 2015 is the lowest since 1973).

LTAT has demanded an apology from the Pandan MP and PKR secretary-general for his "misleading and inaccurate statement" and a written undertaking that he will cease publishing articles of a similar nature.

According to the legal letter dated Aug 1, Rafizi (photo) had misleadingly claimed that the six percent bonus was payable to certain members.

"We have been informed by our client that the bonus of six percent is payable to 'all members' and it is incorrect for you to state that it is paid for certain members only," read the letter.

"If you fail to comply with the above, our client shall proceed to take the necessary legal action against you without further reference to you."

LTAT also demanded that Rafizi refrain from making any further statement on the matter as there is an ongoing court case against him.

Rafizi is facing a charge under the Official Secrets Act for exposing a portion of the auditor-general's report on 1MDB as part of the LTAT exposé.

The AG's report on 1MDB remains a classified document.

Arrogant and going overboard

In an immediate reaction, Rafizi defended his right to scrutinise LTAT's accounts as per his duty as an elected parliamentarian to check and balance any civil servant, government agency, state owned or privately held bodies.

He dismissed the demand delivered by LTAT's lawyers for him to cease and desist as "an attempt to interfere" with his parliamentary duties, accusing the fund's management of being arrogant and going overboard.

"Indeed I feel that this is an insult to the institution of Parliament. The LTAT management's behaviour is regrettable and does not speak well of their transparency in managing monies belonging to armed forces veterans," said Rafizi in a statement.

He also referred to a judgment by Kuala Lumpur High Court judge S Nantha Balan, in a contempt of court proceedings over his public discourse on several Mara properties in Australia.

The judgment stated that in general, the rule regarding contempt of court cannot be used to prevent public discussion on matters of public interest, even if the matter is being heard in an ongoing court proceeding.

"I hope that LTAT will not take any further action that can be seen as an attempt to threaten an MP from bringing up any issue, as it can be seen to exhibit contempt against the institution of Parliament," Rafizi said.

Instead of hiding behind secrecy provisions on its internal information or threatening MPs like himself, he urged LTAT to be proactive and explain the matter of its bonus this year to all, if it is indeed transparent.

Rafizi related that his comments on LTAT were based on information from its own annual report.

The Pandan MP added that as a veteran of seven other defamation suits, he has a pretty good idea what defamation law is all about, and he is confident that his scrutiny of LTAT finances is devoid of mala fide (bad faith), is of public interest and based on facts from publicly available sources.

"As such, I shall await the suit from LTAT and will see their management in court," Rafizi said, adding that he will subpoena LTAT tops guns if the case goes for trial.