KUALA LUMPUR (Jan 6): HSS Engineers Bhd (KL:HSSEB) on Tuesday confirmed that its 30%-owned associate, HSS Integrated Sdn Bhd, is being sued by sukuk holders of the MEX II highway project over alleged breaches of duty in its role as consulting engineer.
The plaintiffs allege HSS Integrated failed in its duty as consulting engineer by approving certain interim payment certificates during construction.
HSS Integrated is among 12 defendants named in the suit, which was filed by 14 holders of Sukuk Murabahah issued by MEX II Sdn Bhd.
In a bourse filing, HSS Engineers said the plaintiffs are seeking, among others, declarations of liability against the defendants, judgement for the dissolution amount of the sukuk, as well as damages, interest and legal costs.
HSS Engineers said HSS Integrated intends to contest the claims and has appointed solicitors to represent it. Case management for the suit has been fixed for Jan 9, 2026.
The company added that it believes HSS Integrated had at all material times discharged its duties professionally and in accordance with applicable legal and contractual standards, and that the suit is not expected to have any material financial or operational impact on the group.
In a press conference in June 2025, HSS Engineers denied any involvement in the RM1.3 billion MEX II sukuk fund drawdown. The company, acting as design consultant, said its role was limited to certifying construction payments. Executive vice-chairman Tan Sri Kunasingam Sittampalam added that they cannot comment on project completion claims as the matter was being investigated.
The other defendants in the suit include MEX II Sdn Bhd, Maju Lingkaran Development Sdn Bhd, Maju Holdings Sdn Bhd, Maju Holdings founder Tan Sri Abu Sahid Mohamed, his wife and son; CIMB Group Holdings Bhd’s (KL:CIMB) investment banking arm, CIMB Investment Bank Bhd (CIMB IB); former director Datuk Yap Wee Leong, TMF Trustees Malaysia Bhd, Crowe Malaysia PLT, and Straits Consulting Engineers Sdn Bhd.
The decision by the 14 sukuk holders to seek legal recourse was first reported by The Edge Malaysia weekly in its Dec 22–Dec 28, 2025 edition, citing a statement of claim filed on Dec 15, 2025 at the Kuala Lumpur High Court.
The sukuk holders, which include Credit Guarantee Corporation Malaysia Bhd and Amanah Raya Bhd, collectively hold about RM563.2 million, or 43.33%, of the RM1.3 billion Sukuk Murabahah.
The sukuk was issued in 2016 to finance the construction of the 16.8km three-lane dual-carriageway linking the Putrajaya Interchange of the MEX I Highway to KLIA and KLIA 2.
The MEX II highway, a 16.8km extension linking Putrajaya to KLIA, was financed by a RM1.3 billion sukuk issued in 2016. Originally due for completion in 2018, the project remains unfinished.
Payment issues began in 2021, leading to sukuk suspension by CIMB IB by end-2021 and MEX II went into receivership in 2022.
Last year, key figures were charged with criminal breach of trust and money laundering involving hundreds of millions linked to the sukuk and alleged falsified progress claims.
Last year, the stalled project returned to the spotlight after Abu Sahid was charged with multiple counts of criminal breach of trust and money laundering involving more than RM450 million linked to the RM1.3 billion sukuk, while Yap was also charged over alleged falsified progress claims exceeding RM314 million.