KUALA LUMPUR (March 23): Lembaga Tabung Angkatan Tentera (LTAT) said it has returned all government contributions, including RM695.05 million for the years 2018 to 2020, to Retirement Fund Inc (KWAP) rather than the Consolidated Fund.

Its statement was made in response to the findings of the Auditor General's Report 2021, which stated that LTAT had not returned government contributions from 2018 to 2020 to the Consolidated Fund.

"Since LTAT's inception in 1973, all government contributions have always been returned to Kumpulan Wang Amanah Pencen (Pension Trust Fund). With the incorporation of KWAP in 2007, the powers, functions, activities, assets and liabilities of the Pension Trust Fund have been vested with KWAP," it said.

"In view of the AG's (Auditor General) findings that both KWAP and Consolidated Funds are government entities under the purview of the Ministry of Finance (MOF), LTAT has sought guidance from the MOF with regard to any future payment of government contributions," added LTAT.

The AG's report, which was released on Tuesday (March 22), said that an audit review found that LTAT had not returned contributions to the Consolidated Fund, but returned it to KWAP instead.

The report said the funds should have been returned to the Consolidated Fund as stated in Paragraph 9(3)(c) Act 101.

The effect of LTAT's failure to return the contributions to the Consolidated Fund had resulted in a RM695.05 million decrease in the federal government's revenue from 2018 to 2020, said the report.