Lembaga Tabung Angkatan Tentera (LTAT) will consult its lawyers to file a legal suit against PKR vice-president Rafizi Ramli for claiming that hiccups in 1MDB payment to a subsidiary for the Sungai Besi air base relocation may have caused the armed forces fund to delay gratuity payments to retired service members.

"LTAT will consult its lawyers to file a legal suit against Rafizi with regard to his statement which has the potential to adversely affect LTAT's reputation and credibility," said its chairperson Mohd Anwar Mohd Nor in a statement.

He explained that the matter of the payment of gratuity to ex-armed forces personnel does not have any connection whatsoever with the developments and running of the project to relocate the RMAF Sungai Besi air base is being managed by LTAT subsidiary Perbadanan Perwira Harta Malaysia (PPHM).

"Those are two separate issues. Thus, Rafizi's actions to try and connect the two is ill-intentioned," read the LTAT statement, further stressing that Rafizi's allegations are false.

"As to the matter of the relocation of the RMAF Sungai Besi air base, PPHM which is a fully-owned subsidiary of LTAT has received all payments from 1MDB. At the same time, LTAT has also paid the contractors engaged for the project on schedule.

"While for the payment of gratuity by LTAT to retired members of the armed forces, all completed applications received by LTAT from Defence Ministry's Urusan Gaji Angkatan Tentera (Ugat) has been processed and all payments has been made to applicants," explained the armed forces fund.

"With this explanation, it is clear that Rafizi has issued a confusing and false statement," said LTAT.

The fund assured all armed forces members who are retiring and want to withdraw their savings, can contact LTAT via its hotline or at its counter at the LTAT building in Jalan Bukit Bintang, Kuala Lumpur.

"They need to bring along a form that has been filled up as well as all supporting documents, and the payment into their account will take no more than 24 hours after receipt of all documentation as per our KPI," it concluded, adding that it is committed to providing quality service and timely payments.

Yesterday, Rafizi had alleged that possible late-payments by 1MDB to PPHM for the air base relocation work may have resulted in LTAT having to pump its own funds so that the subsidiary can pay its contractors on schedule and thus having to delay payments to veterans.

The Pandan MP claimed that he received complaints from armed forces veterans who has been waiting for their gratuity for month on end.

1MDB, in a statement, has decried Rafizi's claims and denied the allegations, calling it a politically motivated attack.