KUALA Lumpur City Hall (DBKL) will terminate the contract with the developer of Plaza Rakyat if it doesn’t honour the agreement, says Khalid Samad.

The Federal Territories Minister said that action will be taken against the developer if it failed to pay up.

“If they can settle the payment within the timeframe then it’s settled.

“We have already given them time to honour the agreement. We will take action (if they fail to pay),” he said after touring the back alleys in Bukit Bintang to see the beautification project there.

The developer has been given until the end of September to settle its outstanding payments to DBKL, failing which its contract will be terminated.

Plaza Rakyat lot owners are also angry that DBKL had “washed its hands of” the matter of compensation over the project that has been stalled for 20 years.

Their pro tem committee secretariat Ng Pang Wah, 69, said they were not informed that DBKL is no longer involved.

Khalid said that he will meet the buyers.

“They can also meet their MP Fong Kui Lun,” he said.

Fong said that City Hall should wait until the deadline before any action is taken because there is an agreement (between City Hall and developer).

“More than half of the buyers have gotten their money back.

“The developer has also set aside RM40 million to pay the lot owners,” he said.

The project in Jalan Pudu was abandoned in 1998 following the 1997 Asian financial crisis.

In 2015, a new developer, Profit Consortium Sdn Bhd, signed a S&P agreement with DBKL to take over the 6.2ha site for RM740 million. – September 4, 2018.