KUALA LUMPUR: The Armed Forces Fund Board (LTAT) firmly denies the claim that it sold land in Batu Kawan, stating that neither it nor its companies own land there.
"The statement concerning its disposal is false and misleading," LTAT said in a statement.
Yesterday (Dec 5), the PAC questioned Boustead Holding Bhd's "hushed" land sales, which were earmarked for development under an earlier plan, which was shelved by the defence minister.
EcoWorld announced the purchase of land owned by Boustead's subsidiary worth RM742 million last month, while chairman Datuk Mas Ermieyati Samsudin said the committee was informed of the sale of land owned by Boustead Plantations Bhd at Batu Kawan, Penang to Ideal Properties Bhd.
LTAT clarified that its asset divestment, including transactions involving its subsidiary Boustead Holdings Bhd, was part of a strategic effort rather than a short-term solution.
"This approach aims to reduce overconcentration on Boustead-Affin and aligns with the Public Accounts Committee's (PAC) recommendations for portfolio diversification," LTAT said.
The board explained that the plan was refined to address current challenges and emerging market opportunities. The revised restructuring plan sought to lower LTAT's asset concentration in Boustead-Affin investments to 35 per cent down from the previous target of 50 per cent.
LTAT stated that this adjustment represented a sustainable, long-term solution to portfolio issues, aligning with PAC's recommendations.
On the disposal of Semenyih land to EcoWorld through Mutiara Balau Sdn Bhd (MBSB), LTAT highlighted a transparent and competitive tender process.
Boustead Properties invited 19 companies, including government-linked companies (GLCs) and private firms, to participate in a request for proposal (RFP). Out of 10 expressions of interest, only Eco World Development Group Bhd submitted a proposal.
"EcoWorld, a Bumiputera-majority-owned property developer, was selected after a comprehensive evaluation based on its competitive commercial offer, innovative development proposal, strong financial standing, and proven track record in Malaysia and international markets," LTAT explained.
The proceeds would, among others, fund Boustead Plantation Berhad's oil palm replanting programme.
"LTAT remains fully committed to upholding the highest standards of transparency and accountability. To ensure all actions align with stakeholder expectations, the restructuring plan will be presented to the cabinet for comprehensive review and approval," the statement said.
Ermieyati said yesterday that these transactions were done discreetly, which differed from the restructuring plan under the LTAT 2023-2025 Strategic Plan, which was announced and discussed publicly.
PAC, in its parliamentary report published two weeks ago, had also criticised the Defence Ministry for blocking efforts to transform LTAT by halting the restructuring plan of Boustead last year.