The National Accounts Committee (PAC) issued a stern warning to the Armed Forces Fund Board (LTAT) that it may lose up to RM5 billion if Boustead Holdings Bhd's financial crisis is not dealt with immediately.
This crisis became more bitter when the "Moonshot Project", which was expected to restore Boustead by reducing the debt by RM3.4 billion, stalled after the Ministry of Defense (Mindef) stopped it.
Now, LTAT's asset value is predicted to decline to RM10.5 billion without any new plans.
Previously, Project Moonshot was planned to focus on major subsidiaries such as Boustead Petroleum, Boustead Plantations, and Pharmaniaga, in addition to making Boustead a real estate company.
However, LTAT added to the burden by taking over Boustead at a cost of RM1.15 billion with an additional debt of RM2 billion.
PAC urges LTAT and Mindef to immediately prepare a new action plan before the end of this year to avoid greater losses to them.
According to reports, a new plan has already been drafted and is now awaiting cabinet approval.
PAC insists that the future of LTAT contributors now depends entirely on the actions of the government and Mindef to save strategic assets that are under threat.
