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Friday, February 23, 2024

LTAT debacle signals larger issues, including corruption, says activist


FMT:

LTAT debacle signals larger issues, including corruption, says activist


Edmund Terence Gomez said the situation at board level reflects the serious implications of the nexus between politics and business.

23 Feb 2024



Defence minister Khaled Nordin eventually conceded that Raja Affandi Raja Noor had resigned, having first claimed the LTAT chairman had retired.


PETALING JAYA: An anti-corruption activist believes the inconsistent announcements by Raja Affandi Raja Noor and the Armed Forces Fund Board (LTAT) to explain his stepping down as chairman point to broader issues behind the scenes which must be addressed.

“It reflects the serious implications of the nexus between politics and business. A Cabinet member is dictating how corporate restructurings should be carried out, and that is totally inappropriate,” Edmund Terence Gomez told FMT.

On Feb 8, LTAT announced that Raja Affandi had “retired”. However, a source informed FMT the following day that the fund’s chairman had resigned due to disagreements about the restructuring of Boustead Holdings Bhd.

Defence minister Khaled Nordin later admitted Raja Affandi did resign, adding he had referred to LTAT’s statement when announcing the supposed retirement.

Raja Affandi’s resignation came shortly after the unexpected exit of CEO Ahmad Nazim Abdul Rahman on Feb 1.

Gomez said the “feud” between Khaled and Raja Affandi is just one of many unresolved issues arising from “historical corruption” affecting LTAT, including the littoral combat ship scandal in 2022.

He also said the LTAT mess indicated other serious issues such as the continued abuse of government-linked companies (GLCs) and the “racialisation of business deals”, citing the Cabinet’s intervention in the intended takeover of Boustead Plantations Bhd by Kuala Lumpur Kepong Bhd as an example.

“The core issue is corruption, which has now resulted in this feud between politicians, specifically (between) the Cabinet and those in the corporate sector leading the GLCs,” he said.

Gomez said the cabinet’s extensive control over GLCs, including in professional appointments and contract decisions, have contributed to ongoing issues within these corporations.

He also said the future of armed forces pensioners and, on a broader level, the country’s economy, will be at risk if politicians continue to interfere in corporate operations.

Gomez urged that a royal commission of inquiry (RCI) be formed for independent oversight of the GLCs and to prevent further political interference.

“Let us have an RCI for GLCs for this issue and GLCs in general, because at the heart of the matter is politicians controlling the GLCs.

“We need an RCI to get this problem solved once and for all,” he said.


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