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New Straits Times

'Kg Sg Baru project must proceed' [WATCH]

KUALA LUMPUR: The stalled redevelopment of Kampung Sungai Baru must resume immediately, said Titiwangsa member of parliament Datuk Seri Johari Abdul Ghani. "The development order has been granted. "So, they must proceed," he said, adding that it could take another five years to complete the project. However, Johari, who is plantation and commodities minister, said the continuation of the project should not prevent residents who are refusing to move out from seeking legal redress. "If they want to take the matter to court, they must be allowed to. If the court orders 20 per cent more in compensation, then just pay it." He said this on Podcast Utama Buletin TV3 with Mior Abdul Malik Raiyani and Azaria Tagaya tonight. "Don't appeal. Proceed with the project." He added that the developer had obtained 3.16ha of land at a relatively low valuation considering its development potential. Johari said the project's troubles began when the developer Ritzy Gloss Sdn Bhd, later renamed KL City Gateway Sdn Bhd, identified the area's redevelopment potential during his first parliamentary term from 2013 to 2018. "While the Legasi Kampong Bharu residential project was being completed by UDA Holdings Bhd, developers expressed interest in developing nearby Kampung Sungai Baru." He said the developer bypassed him as the MP at the time, choosing instead to work with then-Kuala Lumpur mayor Tan Sri Ahmad Phesal Talib to approach residents. "At that time, I found out about this and didn't mind if the interested parties were just fact-finding. "But I later realised there was a serious effort to relocate residents," he said. He said he met residents in 2017 and advised them not to sign any agreement with the developer, as the company had a paid-up capital of less than RM100,000. While he supported the idea of redeveloping the ageing, rundown flats that date back to the 1970s, Johari said only financially sound developers should undertake the task. "But not all residents heeded my advice. "Some (residents) associations supported Ritzy Gloss' proposal; others opposed it." He said the developer got those who agreed to sign a joint venture agreement, not a sale and purchase contract. He said some residents were enticed by offers of RM10,000 for relocation and RM1,200 monthly rent, along with the promise of new housing within four years. The agreements, he said, were signed after his electoral defeat. In 2020, the developer sought to acquire the land under the Land Acquisition Act, a move Johari questioned. "With only 67 per cent of owners agreeing, is it logical to invoke the Act?" The project was gazetted under Section 4 of the Land Acquisition Act on June 18, 2021, and the gazette under Section 8 was issued on June 21 the same year. Johari said there was no oversight after he lost in the 2018 election. "When I was MP, no one relocated because I warned them not to. After I lost, no one checked." Johari was re-elected to the constituency in 2022, and today, only 67 per cent of the 328 households — 264 flats and 64 terraced houses — have agreed to relocate. "The remaining 33 per cent did not, and without their consent, the project cannot proceed." He said residents who were staying put were offered unfair compensation, especially for terraced house owners who were offered RM940,000 to RM960,000 — an insufficient amount to buy similar properties in the city. The relocation of the 67 per cent of households who agreed should have been halted until the remaining 33 per cent agreed, he said. "Now, vandalised units can't be restored," he said, adding that 109 households — 72 flats and 37 terraced houses — still refused to leave. Even with the completion of the project, he warned against unrealistic expectations of the properties' values. "Once ready, we'll assess whether the promised value is real... Will these flats be worth millions as claimed? We'll see," he said. The land acquisition in Kampung Sungai Baru involved terraced houses and flats in Pangsapuri Sungai Baru. The project was initiated in 2016. In July 2024, Minister in the Prime Minister's Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa said in the Dewan Rakyat that the development order for the project had been approved.