MACC probing shares disposal in KL Tower management concession company

• "MACC will investigate whether there was existence of bribery element in the 100% shares disposal by Telekom Malaysia Bhd (TM) in Syarikat Menara KL Sdn Bhd to Hydroshoppe Sdn Bhd in October 2022."

KUALA LUMPUR (Dec 29): The Malaysian Anti-Corruption Commission (MACC) is investigating the alleged suspicious disposal of ownership of the company that owns the concession to manage the Kuala Lumpur Tower (KL Tower).

"MACC will investigate whether there was existence of bribery element in the 100% shares disposal by Telekom Malaysia Bhd (TM) in Syarikat Menara KL Sdn Bhd to Hydroshoppe Sdn Bhd in October 2022," said the anti-graft agency in a statement on Thursday (Dec 29).

So far, MACC has summoned three witnesses and obtained some documents from the parties.

MACC pledged that it will carry out the investigation thoroughly and professionally in relation to this issue.

TM in a filing with Bursa Malaysia on Thursday clarified that its decision to exit the KL Tower concession was part of a business transformation programme to focus its efforts and resources on strengthening its core business of telecommunications and technology.

TM said the KL Tower is owned by the government, while the operations and maintenance of the tower are granted under a concession.

It was reported on Tuesday (Dec 27) that the Ministry of Communications and Digital was examining the acquisition of the ownership of the management of KL Tower from TM through its wholly owned subsidiary Menara Kuala Lumpur Sdn Bhd (MKLSB) by Hydroshoppe.

TM said that in October 2021 it decided to not renew the KL Tower concession after taking into consideration the change in the business nature of KL Tower — from telecommunications services to tourism and hospitality. TM via MKLSB had undertaken the concession since 1996.

Shares of TM closed 10 sen or 1.85% lower at RM5.30 on Thursday, giving it a market capitalisation of RM20.25 billion.