KUALA LUMPUR, Malaysia: The Defence Ministry stands prepared to offer clarifications to the Public Accounts Committee (PAC) regarding the negative reserve balance of the Armed Forces Fund Board (LTAT), if summoned, according to Minister Datuk Seri Mohamed Khaled Nordin.
Addressing concerns raised by the Auditor-General’s Report 2022, which highlighted a negative reserve balance for LTAT, Minister Mohamed Khaled clarified that the report focused on only one of LTAT’s three reserve funds. He emphasized that collectively, the three funds showed a positive balance for the specified year, including the year 2023, with approximately RM900 million in reserves.
The Auditor-General’s report revealed negative reserve balances for LTAT over three consecutive years since 2020, amounting to RM0.376 billion, RM0.285 billion in 2021, and RM0.338 billion in 2022.
PAC chairman Datuk Mas Ermieyati Samsudin indicated that the committee plans to summon LTAT after the Aidifitri celebration to address its financial situation.
In other developments, Minister Mohamed Khaled disclosed that a team comprising seven officers and members from the Royal Malaysian Air Force (RMAF) has been stationed in South Korea since November last year to oversee the acquisition of the FA-50M light combat aircraft. Pilot training for operating the aircraft is set to commence soon, with the acquisition expected to conclude by the end of 2026 or early 2027.
The Defence Ministry signed a contract worth RM4 billion with South Korea’s leading aerospace company, Korea Aerospace Industries (KAI), at the Langkawi International Maritime and Aerospace Exhibition (LIMA) in May last year, for the acquisition of 18 FA-50M light combat aircraft. This modern variant, known as the FA-50 Block 20, is anticipated to provide superior capabilities compared to other variants used by South Korea and several Southeast Asian nations, including Thailand, Indonesia, and the Philippines.
