KUALA LUMPUR (March 1): The Ministry of Defence (Mindef) has filed a report to the Malaysian Anti-Corruption Commission (MACC) today to conduct further investigation to identify the persons responsible for the directive that the Armed Forces Fund Board (LTAT) took over the Automated Enforcement System (AES) project above market price at RM555 million.

In a statement today, Mindef said it has forwarded the report of the investigation done by the investigation committee on administration, procurement and government finance headed by former Auditor-General Tan Sri Ambrin Buang to MACC today.

In its report, the investigation committee had implicated that the previous government's administration including the former prime minister and some of the former government cabinet ministers may have intervened in the directive for LTAT to take over AES to serve their political interests.

"In the investigation report presented to the ministry on Jan 28, the investigation committee has found that the implementation of the AES project has mostly profited the concessionaires and has put the government at risk of loss.

"The investigation committee also found that there were interventions of government administration members including the former prime minister and some former government Cabinet Ministers who were more inclined towards their political interests," special duties officer to the minister of defence Rafizal Ali said in the statement.

Rafizal noted that the investigation committee was sceptical of the suggestion for LTAT to take over the AES project as discussions on the matter were only made during unrecorded meetings between the former prime minister and several ministers in September 2014

"The investigation committee concluded that the decision for LTAT to take over AES was more of an attempt to dismiss allegations that the government tried performing a bail-out. There is suspicions as to why LTAT had to pay a total of RM555 million to acquire AES whereas the original cost was RM40 million," he said.

In May last year, the government mandated the investigation committee on administration, procurement and government finance to probe suspicious procurement and asset purchases by ministries under the previous government, starting with investigation of several projects under the defence ministry.

Following the investigations, Defence Minister Mohamad Sabu revealed last month that the ministry had lost more than RM500 million due to several land swap deals.

Besides Ambrin as chairman, the investigation committee on administration, procurement and government finance comprised former Malaysian Institute of Accountants president Samad Alias, former Rural and Regional Development Ministry secretary-general Mohd Tap Salleh, National Integrity and Governance Department director-general Anis Yusal Yusoff, former director of audit in the National Audit Department Ong Swee Leng, advocate and solicitor Zulqarnain Lukman and Finance Ministry representative Rosli Yaakub, who heads the committee's secretariat.