Business Transactions of Two Companies Worth RM160 Million Using The Armed Forces’ Pension Makes No Sense


PETALING JAYA, 7 Jan: Transactions between Boustead Holdings and Astacanggih and Awan Megah worth RM160 million, involving land at Bukit Raja and an army camp is an investment that does not make sense.

This, according to PKR Strategy Director Rafizi Ramli, is because the land that was allegedly bought by Boustead from Awan Megah still belongs to the Federal Government and is not the property of the company.

Meanwhile, the National Defence Education Centre (Puspshanas) project which was privatised to Awan Megah has a value much lower than RM130 million.

“Payments of this kind to buy land with non-existing titles and projects with a value that is much lower is a betrayal to soldiers and irregularities involving the top leaders of the country,” said Rafizi.

Boustead is an investment unit of Armed Forces Fund Board (LTAT) which maintains the contribution of military personnel payroll deductions.

He denied the LTAT Chaiman, Tan Sri Mohd Anwar Mohd Nor’s statement that the purchases of both the companies are good investments.

Rafizi said that the 223 acres of land in Bukit Raja is still the property of the Federal Government while the transfer of ownership and development on the land is subject to the approval of the Selangor Government.

“Therefore, the payment of RM130 million…to Awan Megah which is owned by the Selangor Wanita Umno Chief, Senator Raja Ropiah Raja Abdullah, is akin to giving the RM130 million to her without any gain to Boustead.

“If this transaction still goes through, Boustrad would have misused the RM130 million of military personnel pension funds to pay for the 223 acres of land to Awan Megah, which does not have ownership of the land,” he said today in a media statement here.

Rafizi also claims that the overall cost to complete Puspahanas, which was suspended, is only RM72.5 million and not RM160 million, which is the total to be paid to Astacanggih and Awan Megah.

According to the agreement with the Federal Government, the project was supposed to be completed by Awan Megah but was delayed.

Meanwhile the agreement forces Awan Megah to post a land bond worth RM72.5 million as a financial guarantee should the company fail to complete the project.

Rafizi said that the Federal Government is entitled to claim the RM72.5 million from Awan Megah for the completion of Puspahanas.

“This means that the overall cost of Puspahanas is only RM72.5 million.

“In Puspahanas’ incomplete condition and its worth being only RM72.5 million, the payment of RM160 million by Boustead is certainly a ridiculous price”.

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