by FAYYADH JAAFAR / pic by TMR FILE
THE Armed Forces Fund Board (LTAT) says it will comply with the Finance Ministry’s (MoF) decision on future returns of government contributions.
LTAT says it noted the findings of the Auditor-General’s (A-G) Report 2021 which states that LTAT has not returned government contributions from 2018-2020 amounting to RM695.05 million to the Consolidated Funds as stated in paragraph 9(3) of Act 101.
“Since LTAT’s inception in 1973, all government contributions have always been returned to the Pension Trust Fund. With the incorporation of the Retirement Fund Inc (KWAP) in 2007, the powers, functions, activities, assets and liabilities of Pension Trust Fund have been vested with KWAP.
“Hence pursuant to a letter received from KWAP in 2007, all contributions including the ones made from 2018 to 2020 from LTAT’s 9,542 pension contributions amounting to RM695.05 million has been returned to KWAP,” it said in a statement yesterday.
“In view of the A-G’s findings and that both KWAP and Consolidated Funds are government entities under the purview of the MoF, LTAT has sought guidance from the MoF with regard to any future payment of government contributions,” it said.
The A-G’s report on Tuesday said an audit review found that LTAT had instead returned the government’s contribution involving 9,542 pension status contributors for 2018 to 2020 to KWAP.
The panel of attorneys’ opinion, obtained on Nov 18, 2021, said that the government contribution made by LTAT to KWAP was in conflict with paragraph 9(3) of Act 101, the report stated.
Due to LTAT’s failure to repay the Consolidated Funds contribution, the federal government’s income decreased by RM695.05 million from 2018 to 2020.