Police report lodged against Hydroshoppe in KL Tower dispute

Police report lodged against Hydroshoppe in KL Tower dispute

KUALA LUMPUR: LSH Service Master Sdn Bhd (LSHSM) has lodged a police report against Hydroshoppe Sdn Bhd in the dispute over the operations of the iconic Kuala Lumpur Tower.

LSHSM CEO Khairil Faizal Othman said the report was lodged on the morning of April 1, after the company was unable to take over the operations of the skyscraper from Hydroshoppe and its subsidiary, Menara Kuala Lumpur Sdn Bhd (MKLSB).

Khairil said the report was lodged at the Dang Wangi police headquarters.

“After we were barred from entering the premises on April 1 (after midnight on March 31), my staff and I went to lodge a police report,” he told reporters on the sidelines of a Hari Raya event with KL Tower staff members today.

He said LSHSM faces financial losses for each day the company is unable to take over the operations of the tower, but declined to divulge the amount.

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In March, LSHSM signed a lease agreement with the federal lands commissioner for a 20-year concession to operate KL Tower and its surrounding areas effective April 1.

However, Hydroshoppe and MKLSB filed a lawsuit to challenge the award of the concession, seeking RM20.13 million in losses and damages and for the concession to be transferred to them.

They also refused to vacate the premises and continue to operate the tower.

Last week, LSHSM said it would rely on the government’s guidance for a “smooth and respectful” handover of the skyscraper’s administration.

Khairil said the firm has sent job offers to continue the employment of all 205 existing employees of KL Tower, with 193 of them taking up the offer.

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He said the 12 who turned down the offer cited various reasons, including a change of industry.

He said LSHSM’s three immediate priorities are to ensure that the employees continue to receive their pay, to cooperate with the government so as to facilitate a smooth handover, and to safeguard the country’s image.

Khairil pointed out that the communications ministry had said the “previous operator”, meaning Hydroshoppe and MKLSB, was made aware since July 2024 that LSHSM would be taking over the management of KL Tower.

He said 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.