LTAT left Leaderless, Updated.

The LCS major equipment detailed by RMN in 2016. RMN graphic

SHAH ALAM: Lembaga Tabung Angkatan Tentera (LTAT) – the Armed Forces Fund Board – is left leaderless after its chairman TS Raja Mohamed Affandi Raja Mohamed retired yesterday. LTAT issued a statement that he had retired. His retirement came a week after the resignation of the CEO Ahmad Nazim Abd Rahman.

Raja Affandi, 66, a former CDF, was one of two candidates for Kemaman parliamentary seat in a by-election in November last year. He lost. Speaking to Berita Harian, Raja Affandi said he resigned instead of retiring.

From the Edge:

Armed Forces Fund Board (LTAT) chairman Tan Sri Raja Mohamed Affandi Raja Mohamed Noor has retired from the board with immediate effect, just a week after chief executive officer Datuk Ahmad Nazim Abd Rahman departed.

This also comes over a month after it was reported that the planned restructuring of the armed forces pension fund had been put on hold, following a change of the head of the Ministry of Defence.

The Edge Malaysia reported in its publication for the week of Dec 18-24, citing sources, that those involved in the restructuring of LTAT had been told not to proceed with any work on it, pending a review by new Defence Minister Datuk Seri Mohamed Khaled Nordin.

Khaled, formerly the higher education minister, was appointed to the post during a Cabinet reshuffle that took place on Dec 12. He succeeds Datuk Seri Mohamad Hasan, who was appointed to head the Ministry of Foreign Affairs.

It must be noted that Khaled went to LTAT to meet with Raja Affendi and its top officials, just two days ago. The media is clearly pointing out the retirement of the chairman and CEO’s resignation are linked to Khaled decision to review the restructuring of LTAT.

While it is convenient to point the finger at Khaled, clearly the decision to delay the restructuring the LTAT comes from higher places. It was clear that the restructuring mooted by the now resigned CEO was not going anywhere when the government decided not to sell Pharmaniaga and Boustead Plantations , last year.

It is also pertinent to point out that Mohamad, who launched the restructuring plan, was against selling off Pharmaniaga and was very skeptical about the Boustead Plantations deal. The Pharmaniaga deal did not went through and the BP went half away, before it too was cancelled.

Anyhow, the most glaring part of the restructuring, the hiving off of BNS to the government has been completed. So I guess both the ex-chairman and ex-CEO had done their job.

It is likely a new chairman will be appointed soon as they need him to start the search for a new CEO whether an internal or external appointment. It is likely former CDF TS Zulkifli Zainal Abidin will be appointed as the chairman as he took over from Raja Mohamed as CDF in 2018. Zulkifli was succeeded by TS Affendi Buang. Affendi and another retired CDF, TS Zulkifeli Zin are the other candidates.

— Malaysian Defence

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17 Comments

  1. This is basically an allusion to the political climate in current Madani Malaysia

    Ada kepala mcm x ada kepala

  2. Alex,

    No it isn’t. The seeds of what would become a self defeating defence policy were laid down in the 1980’s; unrealistic goals of what we wanted to achieve; shifting of priorities; awarding unqualified local companies a license to make money; the “yes man” ingratiating culture; a lack of a apolitical non partisan checks and balances/corrective mechanisms and placing priority not on the end user and taxpayer but on national interests; by the then PM. In parallel to that we also started seeing colossal cockups in other sectors.

    The result is what we have now; an underfunded and under resourced MAF whose capabilities don’t reflect what we’ve spent on it and one we can’t afford to adequately equip and sustain; even in line with the minimalist approach we’ve long had.

  3. Aah, kakistocracy and idiocracy is at work again.
    Can we have competent Chairpersons and CEOs instead of half-senile retirees at the helm of LTAT?
    Perhaps some are now expressing their wish to gun for the position of Next Defence Minister for 2025? We have had DS Mohamad Hasan @ Tok Mat as Defence Minister for just a year after all (wink! wink!)

  4. LTAT is the Armed Forves EPF. Appoint a head who is a pro n staffed by pros at all senior n middle levels. If need to borrow people from EPF or BSN.

  5. Taib “Can we have competent Chairpersons and CEOs instead of half-senile retirees at the helm of LTAT?”

    I rather trust half senile retirees than the new menhan. At the very least even if they are corrupt they have an interest in making sure LTAT a going concern. The new minister however is from team A of a party that’s in corporate terms decided to turn it to a cash cow. That’s is the management don’t believe in long term survival of the organisation and just trying to milk it for what’s its worth.

  6. The retirement of the chairman who has been a big part of the Tarantula sales pitch, will this affect or the Tarantula is a done deal? Also, the PMX statement that the final say is on the end-user is another window dressing?

  7. Ed – ”Also, the PMX statement that the final say is on the end-user is another window dressing?”

    I guess it would depend on what’s being bought; the value and the political angle. Over the years the services have been able to certain things with minimal interference but at times everything’s thoroughly scrutinised. On paper MINDEF, the MOF, PM’s EPU department, Wisma Putra and Parliament are supposed to have a say when it comes to high value politically driven purchases.

    Anwar is well acquainted with the way of doing things as he was part of the system.
    As a former DPM and Finance Minister he was party to all the machinations which took place and he was at the Fulcrum signing ceremony.

  8. Taib – ”Can we have competent Chairpersons and CEOs instead of half-senile retirees at the helm of LTAT?”

    Can have Albert Einstein and Garry Kasparov there but they’ll be under the same rotten, self defeating and politically driven system.

  9. “can it be disbanded & the funds&contributers goes to EPF?”
    But why? The Armed Forces are civil service so the members are in the public sector so they have a different retirement program just as with the civvie civil service retirement scheme under KWAP. The EPF is clearly & specifically is for the private sector. If LTAT were to be disbanded it would fall into KWAP ambit rather than EPF.

    “he was party to all the machinations”
    Never expect the problem to be the solution. We did that with TunM and see what happened. To solve the problem would need a solution that is nothing to do with these old foggies.

  10. While you are correct about the KWAP would be the otion for LTAT funds, it must be noted that the Army and police comes under Public Service and not under the Civil service.

  11. Well noted. Didnt know there was a distinction there. But on the overall both the security & civil services are considered as Government workers. Hence their pension plan are different than the private sector.

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