THE Malaysian Anti-Corruption Commission (MACC) has called three witnesses and collected several documents from related parties as part of its investigation into an alleged deal involving a transfer of management ownership of the KL Tower.

In a statement, the MACC said it will look for elements of corruption in the full sale of shares from Menara Kuala Lumpur Sdn Bhd (MKLSB) to Hydroshoppe Sdn Bhd (HSB) in October.

The Malaysian Insight reported this morning that MACC had started probing into the ownership transfer.

MACC chief commissioner Azam Baki confirmed the matter to The Malaysian Insight but declined to reveal more information about the investigation.

“Yes, MACC has opened investigation papers (on the transfer of KL Tower’s management ownership).

“We have begun investigations,” he told the Malaysian Insight.

Earlier today in a statement, Telekom Malaysia Bhd (TM) said MKLSB is owned by the Malaysian government while the operations and maintenance of the tower is granted under a concession.

It said TM, via its wholly owned subsidiary MKLSB, had been in charge of the concession since 1996.

However, as part of its business transformation programme, TM wanted to focus efforts and resources on strengthening its core business of telecommunications and technology.

After the change in the business nature of the KL Tower from telecommunications services to tourism and hospitality, TM decided in October last year not to renew the MKLSB’s concession and informed the government accordingly.

This year, the selection process for a new concessionaire was undertaken by the government. TM was informed about the appointed company taking over MKLSB’s shares and concession.

MKLSB was to continue operating the concession and ensure the tower continues to attract visitors.

Workers were to be employed with MKLSB under the new concessionaire for a minimum of three years to protect their welfare during the transition.

The statement also said a reference was made to the changes to MKLSB’s shareholding in TM’s third-quarter financial announcement to Bursa Malaysia.

Earlier, the issue of TM selling off its 10 million shares in MKLSB, which manages the KL Tower, had gone viral.

It was alleged that TM had let go of its holding on the subsidiary, which was purportedly making good profits, to less-known company HSB, just before the general election.

A Twitter account (@FreeMsia) claimed MKLSB was making RM66 million of revenue pre-pandemic, of which RM25 million was registered as net profit.

On Monday, Communications and Digital Minister Fahmi Fadzil said Putrajaya will be scrutinising the deal involving the sale of KL Tower.

Fahmi said he views the matter seriously, and that he will receive a comprehensive briefing on the matter from TM early next week.

A check with the Companies Commission of Malaysia revealed that HSB is a general trading company incorporated on February 15, 2008.

The company is based in Shah Alam, Selangor, with a total issued share capital of RM1 million.

The two listed directors are Abdul Hamid Shaikh Razak Shaikh and Nazarina Nasir, with 500,000 shares each. – December 29, 2022.