PKR Urges Armed Forces Fund Board to Stop Transactions


SHAH ALAM, 31 Dec: PKR today urges the Armed Forces Fund Board (LTAT) to stop business transactions with Astacanggih Sdn Bhd (Astacanggih) and Awan Megah Sdn Bhd (Awan Megah) because it is disadvantageous to soldiers.

PKR Strategy Director Rafizi Ramli said that his department will work with a group of former military personnel, including PAHLAWAN and KERABAT, to propel this campaign.

“PKR will formally write to the Minority Shareholders Watchdog Group Berhad to immediately intervene at Boustead’s level to stop this transaction as soon as possible,” said Rafizi in a media statement.

Rafizi said that pressure from these two groups and the Selangor Government’s decision (yesterday) is to prevent the transfer of 200 acres of land which is trying to be sold, is allegedly using RM160 million of public funds.

Befittingly, Datuk Seri Najib Razak has to deal with various allegations made by Deepak and sue him in court if the allegation is false.

“Instead of abusing public funds to bribe Deepak and the Selangor Umno Wanita Chief like this,” he said.

Rafizi said that payments made and will be made to Astacanggih and Awan Megah worth RM160 million will be taken out of existing funds and new loans will have to be taken out by Bakti Wira Sdn Bhd (“Bakti Wira”).

Bakti Wira is a wholly owned subsidiary of Boustead Holdings Berhad (“Boustead”).

The majority of Boustead’s shares are controlled by LTAT which is 61.36 percent as of the latest Boustead Annual Financial Report on page 212, as of 29 February 2012.

Meanwhile, the remainder of Boustead shares are held by minority investors.

Rafizi asserted that Datuk Seri Zahid Hamidi’s decision to order Baustead (through Wira Bakti subsidiary) to take out a new loan for the payment of RM160 million involves the interest and welfare of military personnel as well as minority investors in Boustead.

If this investment is bad and burdens Bakti Wira, it will eventually cause soldiers and minority investors to suffer losses due to Najib Razak’s chaotic panic action to silence Deepak.

He said that Bakti Wira also has a subsidiary company engaging in construction works, which is Jendela Hikmat Sdn Bhd (“Jendela Hikmat”).

This company was given several large privatisation projects by the Ministry of Defence, including a project worth R230 million to build and complete the Tuang Estuary Camp in Sarawak.

The 2010 Auditor General’s Report criticised Jendela Hikmat for failing to complete the project although the project was granted extension, three times.

“If Wira Bakti has to take out a loan of RM160 million to pay Astacanggih and Awan Megah.

“Therefore the new burden of debt will definitely weaken its financial position which in turn affects Jendela Hikmat’s ability to complete government projects.

“Upon checking the financial performance of Bakti Wira which is filed with the Companies Commission of Malaysia,the financial risks have been confirmed to be incurred following the order to pay RM160 million to Astacanggih and Awan Megah,” he said.

He explained that Bakti Wira, that suffered a loss of RM565,923 in 2011, will have to bear the cost of debt of at least RM6.5 million each year.

Quite possibly, the loss for 2012 and the years ahead will be more severe and lasting due to the consequences of the RM160 million debt that it has to incur.

“Bakti Wira’s financial position will also be weakened by the RM160 debt which is too large compared to its small assets of around RM50 million.

“The land that was allegedly purchased is most likely not able to be transferred, resulting in no new assets that can be injected to compensate the RM160 million debt taken to pay Astacanggih and Awan Megah,” said Rafizi.

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