KUALA LUMPUR: The government has not initiated the payment of the RM555 million compensation to the Armed Forces Fund Board (LTAT) following its takeover of the Automated Enforcement System (AES) project, said Transport Minister Anthony Loke.

Loke said the delay in compensating LTAT is because negotiations are still ongoing. “The plan was to pay them (LTAT) back in stages,” he told reporters at the Parliament building yesterday.

“But negotiations are still ongoing and so we have to seek the advice from the Attorney-General’s Chambers,” he added, without elaborating.

Last August, the current administration agreed to repay LTAT RM555 million, which constitutes the original cost of investment, to take over two companies holding AES concessionaires in 2014.

At that time, LTAT argued that the previous Barisan Nasional administration has agreed to take over the AES project from the board at the latter’s full investment cost, including a 12% annual return for the two and a half years that LTAT owned the concessionaires.

Critics have argued that the RM555 million takeover by LTAT was overpriced, when comparing the gap between the takeover price and the balance sheet of the two AES companies. LTAT, in response, said the price included expected returns from the project.