Plaza Rakyat saga drags on as developer asks to delay project start date

THE saga of the abandoned Plaza Rakyat project in Jalan Pudu, Kuala Lumpur continues as there is still no indication when work will commence, Bukit Bintang MP Fong Kui Lun said.

The project, which was to be a major landmark in the capital, was abandoned in 1998, following the 1997 Asian financial crisis.

It is a mixed development comprising a 79-storey office tower, 46-storey condominium block, 24-storey hotel and a seven-storey shopping centre.

Fong, who has helped buyers get back their investments, said Kuala Lumpur City Hall (DBKL) had informed him that the developer had asked for an extension on the project start date, after several false starts.

“What I heard from DBKL is that the developer had asked for an extension to restart the project.

“It could be because of the Covid-19 pandemic and other issues they have to settle before redeveloping the site.

“I met the Kuala Lumpur mayor and he said they are negotiating with the developer on the extension and when the project will start,” Fong told The Vibes.

Developer Profit Consortium Sdn Bhd won the tender for the RM740 million contract to revive the project in October 2015.

However, not much has been done since then.

Fong said they (DBKL) will decide on the next course of action.

“It’s the prerogative of the mayor to decide on this issue. We also need to know the outcome (when the project will start). Whether it’s six months or one years’ time...?”

Buyers seeking compensation

As for the 19 lot owners who refused to take the compensation offered by the developer, Fong, who had worked on helping those with units in the project, said that he has done everything he could to help them.

“Only a few people didn’t want to take the offer,” Fong said.

“They (buyers) wanted interest on their investments. I said it was difficult. If they want the interest, then they must engage a lawyer.

“It’s up to them. I have already done my job getting the compensation for them. If they want more, then take legal action.”

He said most of the buyers have received their full investments.

“If they paid RM1 million, then they received the full amount. Seldom you can see this happening,” he said.

“I already helped them get 100% of their deposits back. Where can we see developers giving back the full amount?

“Those who received their deposit were very happy. They never expected to get 100% back.”

It was reported that originally there were 211 buyers and, according to Fong, more than a hundred buyers have had their investments returned back to them. – April 9, 2024.