KUALA LUMPUR: The Auditor General has flagged the Armed Forces Fund Board (LTAT) for diminishing investment returns in two subsidiaries.
In a statement on the Auditor General's 2022 report, Datuk Wan Suraya Wan Mohd Radzi also flagged LTAT's decision to pay dividends derived from non-cash profits to contributors.
"This report emphasises significant and material issues which affect the financial performance of federal agencies."
The findings in the AG's report come amid turmoil in LTAT following the resignations of three senior executives in less than a month.
On Jan 31, LTAT in a statement announced the departure of its chief executive Datuk Ahmad Nazim Abd Rahman.
Nazim was appointed as chief executive in June 2021.
Later, on Feb 8, LTAT announced that General (Rtd) Tan Sri Raja Mohamed Affandi Raja Mohamed Noor had retired as its chairman.
However, Affandi later clarified that he had resigned and not retired from the post.
On Feb 19, the head of strategic asset allocation for LTAT, or senior director of strategy, Dayana Rogayah Omar also tendered her resignation.
Last year, Defence Minister Datuk Seri Khaled Nordin reportedly put LTAT's restructuring plan on hold pending a review.
The plan was reportedly drawn up to ensure LTAT has a more diverse portfolio and can pay higher dividends on a more sustainable basis by 2025.
TAGS:Auditor General, AG's Report, Government, NST, LTAT