KUALA LUMPUR (June 11): HSS Engineers Bhd (KL:HSSEB) has denied any involvement in the drawdown of funds from the RM1.3 billion sukuk financing for the troubled Maju Expressway Extension (MEX II) project, which is currently under investigation by the Malaysian Anti-Corruption Commission (MACC).
HSS Engineers served as the design consultant for the project, which entails design and construction supervision works, including certifying payments related to construction costs, said HSS Engineers executive vice-chairman Tan Sri Kunasingam Sittampalam.
“There are many parts to the loan facility — pre-operational, incidental, construction-related costs, and everything else,” he said at a press conference on Tuesday. “We only certify payments for the construction [costs].”
On whether HSS Engineers had verified that MEX II was 89% complete, given its role in certifying construction payments, Kunasingam said he was unable to comment as the matter is under MACC investigation.
"We have extended our full cooperation to MACC, including providing all relevant details and supporting documents. It is best to allow the investigation to run its course and await the outcome," he said.
WATCH: HSS Engineers says not involved in MEX II drawdown
The MEX II highway — an 18km extension from the MEX Putrajaya Interchange to the KLIA highway — has long been mired in delays. Despite being scheduled for completion in 2019, construction has stalled with the project reportedly 89% complete, though this figure remains unverified.
The project concessionaire, MEX II Sdn Bhd, a subsidiary of Maju Holdings Sdn Bhd, began defaulting on sukuk payments in 2021. The company has since undergone failed restructuring attempts and is now under receivership.
On Wednesday, Kunasingam also highlighted that HSS Engineers had written down over RM10 million in its 2022 accounts related to unpaid dues from MEX II.
Last month, MACC revealed that it has launched three investigations into alleged bribery and false claims tied to the MEX II project, which includes RM361 million in purportedly falsified claims and RM416 million in alleged false disclosures related to sukuk proceeds and bank loans.
The alleged false claims are linked to the RM1.3 billion sukuk issued in 2016 to finance the project. A further RM12 million in alleged bribes is also being investigated.
MACC has arrested nine people so far and recorded 31 statements, according to Chief Commissioner Tan Sri Azam Baki. Authorities have also seized RM2.9 million in cash, luxury vehicles worth RM900,000, and frozen bank accounts totalling RM34 million.