The reported buy over of the Maju Expressway (MEX) for RM1.7 billion appears to have been shelved, as the government claims that it had “never” approved the sale of the concession.

“The government had never acceded to the proposal to sell the MEX concession to EP Manufacturing Berhad (EPMB),” said Prime Minister Najib Abdul Razak, who is also the Finance Minister, in a written reply to Petaling Jaya Utara DAP MP Tony Pua.

It was reported in March that EPMB will acquire the concession from Maju Holdings Sdn Bhd by issuing RM1.2 billion worth of sukuk (Islamic bonds), while the rest will be sourced from bank borrowings.

NONE Pua ( left ) had asked why the MEX concession was approved to be sold to EPMB and whether the government could take over the concession for RM400 million as stated in the agreement.

“This is because there are several policy matters related to this highway concession that must be studied by the government,” read the reply.

But Pua pointed out that the the government has only not approved it, but also there is no reassurance that “it will never” permit the sale.

PKR’s strategic director Rafizi Ramli had insisted that the government must retrieve the grant of RM976.7 million which was given to Maju Holdings to construct the 26km Kuala Lumpur-Putrajaya tolled highway prior to its completion in 2007.

This was backed by Pakatan Rakyat MPs who said that the opposition coalition will take over the highway if it succeeds in the next general election.

Maju Expressway is 96.8 percent owned by tycoon Abu Sahid Mohamed, who is best known for turning around the ailing Perwaja Steel Bhd.

Pakatan claims that Abu Sahid will make RM1.09 billion in profits from the deal, out of an initial investment of RM60 million, which would be an 1,800 percent return on investment.