Putrajaya accused of protecting 'select super-rich' after KL Tower sealed off amid legal dispute

Putrajaya's intervention late last night in a concession dispute between two companies over the operation of the Kuala Lumpur Tower, which resulted in the iconic landmark being closed to visitors, has been condemned by Perikatan Nasional, which questioned if it marked a new trend where the government was using its power to benefit a "select group of super-rich".

Tasek Gelugor MP Wan Saiful Wan Jan, who heads the opposition coalition portfolio that oversees the communications ministry responsible for the tower, rejected the government's excuse that the closure was to "undertake maintenance and improvement works".

"The reason given is another lie by this government. I consider this closure as an act of force by the government to forcibly evict Menara Kuala Lumpur Sdn Bhd (MKLSB) headed by Abdul Hamid Shaikh Abdul Razak Shaikh," he said in a statement.

Hamid is the managing director of Hydroshoppe Sdn Bhd, the parent company of MKLSB, which is challenging the government's decision to award a 20-year concession to operate the tower to LSH Service Master, a subsidiary of Lim Seong Hai Capital Bhd, a company owned by tycoon Lim Keng Cheng.

MKLSB and Hydroshoppe have filed a lawsuit against the Malaysian government and LSH Capital, saying , saying it was the rightful operator of the tower when the communication ministry in 2022 agreed to extend its concession to 2039.

Yesterday, representatives of LSH Capital accompanied by police and officers from Dewan Bandaraya Kuala Lumpur and the Federal Commissioner of Lands sealed the entrance to the tower to prevent MKLSB staff from entering.

A video clip shows Hamid outside the entrance to the tower, where an officer was heard informing him that he could no longer enter the building as it had been taken over by the government.

The officer also told Hamid that no LSH Capital personnel are allowed to enter the building.

Speaking to MalaysiaNow, Hamid said one of his staff was threatened by an officer, who forced him to delete a video recording which showed an employee of LSH Capital entering the vicinity.

The communications ministry has since announced that the tower would be closed to visitors in order to carry out upgrading works.

'Thug-like action'

In a statement, MKLSB's lawyers called the ministry's statement "deceitful".

"The thug-like action by the communications ministry, PTP, police and DBKL in assisting LSH to take over the concession that is still being disputed in court is a blatant violation of the country's justice system," said the legal firm representing MKLSB.

"Several LSH employees had entered the KL Tower building together with enforcement officers, although the authorities had previously stated that no LSH employees were involved in the operation.

"This clearly shows the government's abuse of power for the benefit of interested individuals," it added.

Hamid said the ministry's excuse in sealing off the tower contradicted with that given by enforcement officers, who told him they were implementing an eviction notice issued by the Federal Commissioner of Lands last week.

He also denied claims that MKLSB had underperformed.

"We have the document that says MKLSB's performance is 100%. When we participate in a tender process, of course we would ask the relevant ministry about performance. We have the document that says our (performance) is 100%," he added.

Tourists disappointed

Since its opening in 1996, it is only the second time that the Kuala Lumpur Tower has been closed to visitors, after the Covid-19 pandemic. 

Hamid said the tower receives an average of between 1,000 and 1,500 visitors daily, of which some 90% are foreign tourists.

This morning, scores of tourists were left disappointed outside the tower complex after learning that they were not allowed inside.

A tourist from Spain who arrived with his family said they had set aside the whole day to tour the site.

"We only found out today," said the man, adding that he could not reschedule his itinerary. "Maybe next visit," he said, before leaving the area.

The development comes just three days after thousands attended a Hari Raya open house at the tower, where former prime minister Dr Mahathir Mohamad, who is credited with the idea of building the structure, unveiled various items symbolising his Vision 2020 from a time capsule that had been kept in the tower since its opening in 1996.

Wan Saiful said it was not the first time the government had acted to "evict certain groups to make room for others".

"Previously, the nation witnessed the eviction of Kampung Sungai Baru residents to allow the contractor, KL City Gateway (KLCG) Sdn Bhd (formerly known as Ritzy Gloss Sdn Bhd) to take over the area. KLCG is a subsidiary of Suez Capital, which is headed by Ter Leong Hing," he said.

"Is Malaysia witnessing a new 'trend' of the government using its power and agencies for the benefit of a select group of super-rich?" asked Wan Saiful.