Malaysiakini News

Mindef ready to be probed over LTAT's involvement in AES

Published:  |  Modified:

The Defence Ministry is willing to be investigated over any governance issues with the Armed Forces Fund Board's (LTAT) involvement in the Automated Enforcement System (AES) project.

In a statement today, the ministry assured that the interests of LTAT contributors, which comprises members of the armed forces, will be taken into account before LTAT's contract is terminated.

This is in response to the announcement by Transport Minister Anthony Loke earlier this month that the government will write off 3.1 million unpaid AES summonses amounting to RM435 million, and that all project's cameras will be taken over by the Road Transport Department after the contract of the two concession companies ends.

Loke also said the government will only repay the RM555 million capital invested by LTAT in the project, and will not pay for other AES-related matters as board's decision to take over the two AES project concessionaire companies – ATES Sdn Bhd and Beta Tegap Sdn Bhd – was "a bad decision in the first place".

According to the ministry, the government has agreed to conduct talks to iron out several issues.

"Since LTAT has invested quite a huge sum in the implementation of the AES, the government has agreed to have further talks between the Transport Ministry, Finance Ministry, Defence Ministry, the Attorney-General's Chambers, and LTAT, to discuss issues which may arise from the decision – including legal and financial implications based on contractual obligations.

"Because contributors of LTAT are members of the armed forces, the Defence Ministry assures that the interests of the contributors (to the fund) will be taken into account, following the contract termination," said the statement.

On online suggestions for LTAT to be probed for being involved in the project, the ministry said it was open to being investigated by the authorities, "should there be issues with governance in the LTAT investment".

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