KUALA LUMPUR (May 22): The Malaysian Anti-Corruption Commission (MACC) said on Thursday it has opened three investigation papers into alleged bribery and false claims related to the 18km Maju Expressway Extension (MEX Extension) project.

This confirms a report by The Edge Malaysia in late April, which quoted sources saying that the anti-graft agency had launched a probe into the alleged submission of false claims linked to funds raised via a RM1.3 billion sukuk issuance for the project. The investigation has also led to the arrest of an individual bearing the honorific title “Datuk Seri”.

At a press conference, MACC chief commissioner Tan Sri Azam Baki said the first investigation paper involves false claims amounting to RM361 million, derived from sukuk funds.

The second case relates to false disclosures involving RM416 million in sukuk proceeds and RM50 million in bank loans. The third case concerns individuals who allegedly solicited and received approximately RM12 million in bribes.

The investigation, which began on May 9, has so far resulted in the arrest of nine individuals and the recording of statements from 31 others to assist with the probe, said Azam.

In addition, authorities have seized RM2.9 million in cash, two luxury vehicles — a Porsche 911 and a Range Rover Sport worth a combined RM900,000 — and frozen bank accounts totalling RM34 million.

The MEX Extension, also known as MEX II, is a planned three-lane dual carriageway linking the MEX Putrajaya Interchange to the KLIA highway. It has come under scrutiny after missing its December 2019 completion target.

The delays were attributed to MEX II Sdn Bhd, the project concessionaire, being unable to complete construction due to financial constraints.

MEX II is owned by Maju Holdings Sdn Bhd, which also owns Maju Expressway Sdn Bhd — the operator of the original 26km Maju Expressway linking Kuala Lumpur to Putrajaya and Cyberjaya.

MEX II had issued the sukuk to finance the extension, but began defaulting on principal and profit payments in 2021. Despite receiving payment extensions from sukuk holders, the notes were suspended by CIMB Investment Bank Bhd, the facility agent, at the end of 2021 after the company failed to meet its obligations.

Following the default and subsequent failed restructuring attempts, a receiver was appointed for MEX II. Meanwhile, the highway project remains stalled.

Earlier this month, Works Minister Datuk Seri Alexander Nanta Linggi said the ministry is working closely with all stakeholders to resolve MEX II’s prolonged delay.

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MACC probe into RM360 mil false claims involves MEX II's RM1.3 bil sukuk issuance — sources