RM40 million to settle compensation issues with Plaza Rakyat lot buyers

A total of RM40 million has been allocated to settle compensation issues concerning 211 lot buyers of the Plaza Rakyat project which has been abandoned since 1997, the Dewan Rakyat was told today.

Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor said Profit Consortium Sdn Bhd had been appointed to revive the project and was expected to enter the sale and purchase agreement with Kuala Lumpur City Hall next month.

"The price agreed for the Plaza Rakyat project is RM740 million, in which RM700 million as an outright sale of site and the remaining RM40 million to be used to settle the compensation issues with the lot buyers," he said in reply to Fong Kui Lun (DAP-Bukit Bintang) during question time.

Fong had wanted to know why it had taken to long for City Hall to solve the issue and whether the project would be revived anytime soon.

Tengku Adnan said City Hall had undergone a long legal process in solving the issues concerning the Plaza Rakyat project which had been abandoned due to the economic downturn in 1997 and the financial problem faced by Plaza Rakyat Sdn Bhd (PRSB), following which the project was handed over to City Hall on Nov 6, 2014.

"With the appointment of the new developer (Profit Consortium), it is hoped that the abandoned project can be revived," he added.