NAJIB's VERSION ON 2% LTAT DIVIDEND
NEWS ON LTAT's 2% DIVIDEND AND WHAT THE FORMER PREMIER HAS GOT TO SAY
Najib Razak says the current Malaysian government embarrassed to reveal main reasons behind LTAT's 2 per cent dividend
|Mohd Najib Abdul Razak,|
Malaysian former prime minister
MALAYSIAN former prime minister Mohd Najib Abdul Razak denied that the two per cent dividend announced today, Monday 30 September 2019, by Armed Forces Fund Board (LTAT) for 2018 was due to legacy issues from his administration.
Instead, he said, the Pakatan Harapan (PH) government is "embarrassed" to reveal the main reasons behind the significant decline in LTAT's income for the fiscal year of 2018.
"As usual, many excuses are given, including attempts to blame the previous BN government.
"But what they do not mention is that most of LTAT's big investments recorded a loss due to the declining economy after the 14th general election (GE14), and also the country's stock market which became the worst in the world under Harapan," Mohd Najib claimed in a statement posted on Facebook today.
Najib added that the dividend for LTAT for the nine years he was prime minister from 2009 to 2017 was an average of 14.1 per cent.
Earlier today, LTAT had announced in a press conference that their dividend for 2018 will be 2 per cent, the lowest in the board's history.
LTAT had said the significant decline in their income for 2018 was due to various legacy issues, such as the restatement of their financial year 2016 and 2017 accounts which had overpaid dividends for those years, which subsequently led to a negative impact on retained earnings.
They had also said that they were negatively impacted by the implementation of the Malaysian Financial Reporting Standard (MFRS) which resulted in an impairment of RM116.7 million, as well as an impairment on Boustead Heavy Industries Corporation Berhad of RM60.4 million.
Najib said the PH government had neglected to mention that the shares of Boustead Holdings, LTAT's main investment had fallen by 67 per cent since GE14, and that they had suffered a loss of RM488 million in 2018.
In 2017, Boustead had revenue of RM875 million, according to Najib.
"Like Khazanah Nasional, Boustead Holdings never suffered a loss in the nine years I was prime minister," he said.
An independent audit conducted by Ernst & Young in February 2019 had revealed financial irregularities and weaknesses in LTAT.
LTAT had said they had a five-year plan to address these weaknesses and were focused on building a governance structure within the board which was previously lacking.
by Fauzi Kadir ° Permadu Malaysia
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