This is an open letter from a veteran:

As a veteran, I took an oath to protect this nation with my life. I served with the belief that my sacrifices—and those of my family—would be honoured with more than medals: with security for our futures.

But the recent Public Accounts Committee (PAC) report on the Lembaga Tabung Angkatan Tentera (LTAT) has shattered that belief.

This isn’t just a dry financial report. It’s a devastating exposé revealing how the very institution meant to safeguard our retirement savings is on the verge of collapse.

Even more alarming, the report exposes practices by LTAT that resemble a Ponzi scheme, where payments are made without actual profits, creating an illusion of stability.

And all of this is happening under the watch of Defence Minister Khaled Nordin, who blocked urgent reforms.

Here’s why I’m taking my money out of LTAT before it’s too late—and why Khaled Nordin must act now or resign if he fails to fix this mess.

For more background on this story, read here.

Veterans’ savings are disappearing

The PAC report makes one thing painfully clear: LTAT, the retirement fund for Malaysia’s armed forces, has lost half of its value. Imagine you had RM100,000 saved for your family’s future. Today, that amount is effectively worth RM50,000.

How did we get here? According to the PAC, 60% of LTAT’s portfolio is tied to Boustead Holdings Berhad, a company drowning in debt and riddled with financial troubles.

Between 2019 and 2021, Boustead failed to pay LTAT a single sen in dividends. Its subsidiary Pharmaniaga is now in PN17 status, the financial equivalent of life support.

Imagine planning your child’s education, your family’s healthcare, or your own retirement, only to discover that your savings are tied to a failing business. This isn’t just poor management—it’s a betrayal of every veteran and their family.

Non-cash dividends: A Ponzi-like illusion

The PAC report exposes an even darker truth: LTAT has been paying dividends using “non-cash gains.”

Imagine a family sitting around a dinner table. They’re out of real food, so they serve imaginary meals. The table looks full, but no one actually eats. That’s what LTAT has been doing with our dividends.

In 2022, it declared a 5% dividend, but instead of using real profits, it relied on RM189 million from internal transactions—money that doesn’t actually exist in cash form.

This practice, much like a Ponzi scheme, creates an illusion of wealth and stability while hiding the grim reality: LTAT doesn’t have the cash to sustain these payouts. Like all Ponzi-like setups, it works until it doesn’t—until there’s no money left to pay contributors.

The PAC has rightly warned that such practices could lead to a liquidity crisis. If LTAT can’t pay dividends tomorrow, who suffers? We do—the veterans who served this country and the families who stood by us.

Khaled Nordin’s reckless decision to block reform

LTAT’s troubles didn’t arise overnight. Plans were in place to fix the mess through Project Moonshot, a comprehensive reform initiative to delayer Boustead and diversify LTAT’s investments.

But Khaled Nordin blocked the plan, calling it “too radical.” The PAC report makes it clear this decision lacked both legal and financial basis. Without offering any viable alternative, Khaled chose to protect Boustead—a company plagued by financial mismanagement—over the futures of LTAT’s contributors.

Blocking reforms to save a failing company at the expense of veterans is not just reckless; it’s unforgivable. If Khaled cannot act decisively to save LTAT, he must resign immediately. And if LTAT collapses or requires a government bailout, there must be an independent investigation into his actions.

What about our families?

This isn’t just about veterans. It’s about our families—our spouses, children, and the widows of those who never came home. They too believed LTAT was a secure safety net. The PAC report shows that LTAT’s reserves have been negative for three consecutive years:

• RM376 million in 2020.

• RM285 million in 2021.

• RM338 million in 2022.

These figures represent the erosion of promises made to us. What happens when there’s nothing left in LTAT’s coffers? What do we tell our families then? That the country we defended abandoned us? That Khaled Nordin refused to act while our futures crumbled?

Khaled must act now—or step aside

The PAC report provides a clear roadmap to save LTAT:

1. Diversify LTAT’s investments to reduce its dependency on Boustead.

2. Stop using non-cash gains to declare dividends, ensuring that payouts are backed by real profits.

3. Implement Project Moonshot or a similar reform plan to restore financial stability.

Khaled Nordin has no more excuses. If he cannot implement these reforms immediately, he must resign. And if his actions—or inactions—lead to LTAT requiring a government bailout, he should be investigated for dereliction of duty or potential misconduct.

Veterans, it’s time to protect ourselves

The numbers don’t lie:

• LTAT’s value has halved.

• 60% of its portfolio is tied to a failing company, Boustead.

• Its reserves are in the red year after year.

The use of non-cash gains as a lifeline is no different from the tactics of a Ponzi scheme—misleading, unsustainable, and ultimately disastrous. As a veteran, I cannot stand by while Khaled Nordin gambles with our futures. My family deserves better, and so does yours.

If Khaled won’t protect us, we must protect ourselves. Review your savings, ask hard questions, and, if necessary, take your money out of LTAT before it’s too late.

Act now, Khaled. Or step aside and face the consequences of your failure.