The Employees Provident Fund (EPF) is urged to explain why it is paying RM1.13 billion to acquire a 40 percent stake in the Duta-Ulu Klang Expressway (Duke) – a figure a PKR MP said far exceeds its value.
A 2014 transaction showed a 30 percent stake in Duke was sold for RM220 million. A 40 percent stake would then have been RM304 million, Bayan Baru MP Sim Tze Tzin said.
Thus, going by the price EPF is paying, the value has ballooned by close to four times in just two years.
Sim added that EPF must explain the matter, especially since Ekovest, which is selling the stake to EPF, is linked to Defence Minister Hishammuddin Hussein.
Hishamuddin's brother Haris Onn owns 15 percent of the public-listed firm.
"The EPF must explain whether there is any political pressure or political directive connected to the deal," he said in a statement.
He said it is illogical to say that Duke's value appreciated that much, given the Malaysian Resources Corporation Bhd (MRCB) sale of its 30 percent stake in 2014.
"If the EPF appreciates the value of the Duke highway so much so that it is willing to pay Ekovest RM1.13 billion of a 40 percent stake, why did its company MRCB divest the 30 percent stake in Duke highway for a mere RM228 million two years ago?" he asked.
"I am worried that the pricey acquisition by EPF could be another episode of the pricey acquisition of power assets by 1MDB, which the nation has to bear the brunt," he said.
Ekovest announced the sale through a filing with Bursa Malaysia yesterday.
The entire highway is valued at RM2.38 million.
Earlier, business daily The Edge reported analysts were split on whether the valuation is fair or otherwise.
One analyst said it is "a little on the high side" while another believes it takes into account Duke Phase 2, scheduled to be ready by year's end.
Ekovest invested about RM1.18 billion into the venture. - Mkini
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