LSH files police report against Hydroshoppe over KL Tower dispute — report

• Hydroshoppe and MKLSB initiated legal action including against LSHSM and the government, as they alleged contractual breaches and misconduct that led to the award of the concession to LSH Service Master.

KUALA LUMPUR (April 8): LSH Service Master Sdn Bhd (LSHSM), the 70%-owned unit of Lim Seong Hai Capital Bhd (KL:LSH) has filed a police report against Hydroshoppe Sdn Bhd amidst the dispute over the concession to operate the government-owned Kuala Lumpur Tower (KL Tower), Free Malaysia Today reported.

The police report was filed on April 1, as LSHSM was unable to take over the operations of the iconic tower from Hydroshoppe and its subsidiary Menara Kuala Lumpur Sdn Bhd (MKLSB), according to the news report.

LSHSM in March secured the concession agreement with the federal government to operate, manage, and maintain the tower, which was meant to last 20 years from April 1 this year until March 31, 2045.

However, Hydroshoppe and MKLSB initiated legal action including against LSHSM and the government, as they alleged contractual breaches and misconduct that led to the award of the concession to LSH Service Master.

The plaintiffs want the concession to be transferred to them, and for the defendants to pay them RM20.13 million in loss and damages, calculated at an annual interest rate of 5%, as well as general damages to be assessed.

LSHSM CEO Khairil Faizal Othman was quoted as saying that the communications ministry had informed the previous operator, Hydroshoppe and MKLSB, as early as July 2024 about LSHSM's upcoming takeover of KL Tower's management.

He also stated that the ministry had given an assurance the tower’s operations would continue uninterrupted, with the transition to be planned and coordinated to safeguard public interest.

Khairil also emphasized that LSHSM continues to incur financial losses daily due to the delay in assuming operations, though the company has opted not to disclose the specific amount.

Right now, LSHSM's three immediate priorities are ensuring employees receive their salaries, cooperating with the government for a smooth handover, and safeguarding the country's image, Khairil was quoted as saying. 

The company has extended job offers to all existing 205 KL Tower employees, with 193 accepting the offer, he added.

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