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Two LTAT transactions did not comply with financial reporting standards

KUALA LUMPUR– Two transactions made by the previous Armed Forces Fund Board (LTAT) management, did not comply with the financial reporting standards of the National Audit Department, said its chief executive officer Nik Amlizan Mohamed.

She said according to the audit report, the first transaction involved the sale of land in Cochrane and Bukit Jalil amounting to RM202.71 million which should not be taken into account in 2017 as the sale had not been finalised.

The second transaction involved Available-for-Sale Securities of RM1.6 million involving Dayang Enterprise Holdings Bhd and Sapura Energy Berhad, which were not reported in LTAT Financial Statements for financial year 2017.

“These transactions cannot be recognised in accordance with the Financial Reporting Standards 118 relating to revenue because the criteria for revenue were not met,” she told a press conference at the Parliament lobby here today which was also attended by Defence Minister Mohamad Sabu and his deputy Liew Chin Tong.

Nik Amlizan said the impact of the findings had caused LTAT’s profit for the financial year 2017 to be reduced from RM662.17 million to RM370.56 million.

“LTAT’s cumulative profit also dropped drastically to negative earnings of RM3.6 million compared to a positive cumulative profit of RM259.99 million previously,” she said.

Earlier, during the oral question-and-answer session at the Dewan Rakyat, Mohamad Sabu said the revised LTAT financial statement for 2017 had to be made as two errors were found in the statement including a total of RM202 million which had been declared as revenue from land sale.

The land sale should not be accounted for as the transaction had not been completed in 2017.

In reply to a supplementary question from Datuk Seri Ismail Sabri Yaakob (BN-Bera) on the current status of Royale Chulan Bukit Bintang Hotel, Mohamad said the final decision would be decided by the Economic Planning Unit.

Source: BERNAMA (News Agency)

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