1MDB's financial problems may be affecting the ability of Lembaga Tabung Angkatan Tentera (LTAT) to pay gratuity payments to retired army veterans, claimed Pandan MP Rafizi Ramli.

Rafizi said he has received complaints from army veterans that they have not yet received their gratuity payments six months after they retired.

However, he believed that up to 12,000 ex-service staff may be affected.

Rafizi said the gratuity payment process should take no longer than one month.

"So for six months they have no income," he said in a press conference at the Parliament lobby today.

Rafizi suspects that this may have been caused by late payments from 1MDB to a LTAT subsidiary.

1MDB, however, denied the allegations and urged Rafizi to stop making politically-motivated attacks against the firm.

Perbadanan Perwira Harta Malaysia (PPHM) had been appointed by 1MDB to relocate the Sungai Besi Royal Malaysian Air Force base and upgrade several other bases, which were the conditions when 1MDB was granted the Bandar Malaysia landbank.

Rafizi said the contract was worth RM2.1 billion.

"We don't know if 1MDB has completed payments to PPHM.

"If 1MDB is late to pay PPHM, I fear that LTAT will be forced to use its funds first to pay their sub-contractors," he said.

The PKR vice-president said this would affect LTAT's payments in a timely manner.

Rafizi has asked PPHM to disclose how much of its payments to its sub-contractors came from LTAT.

He also wants 1MDB to state how much it has paid to PPHM.

In a statement late today, 1MDB said the claims are "baseless".

It said all there is no outstanding payments to PPHM.

"Furthermore, whilst 1MDB has been through a challenging period in 2015, it has consistently met al its financial debt interest and principal payments when due.

"We accordingly urge YB Rafizi Ramli to stop his politically motivated, desperate and irresponsible attempts to wrongfully implicate 1MDB in such matters," it said.