A company has sued the Malaysia Stadium Corporation for RM41.598 million in damages for allegedly failing to follow through on an agreement.

In its statement of claim, the company, KL Karnival Sdn Bhd, claimed that it has suffered losses from the corporation’s unkept promise to lease it a 123,000 square feet (1.1 hectare) plot for three years.

However, it claimed, the corporation then changed its mind and instead wanted to sell the plot to a developer.

“The plaintiff has suffered huge losses amounting to RM41,598,000.00 comprising expenditures on all costs involved and loss of rental revenue,” it said.

The suit was filed at the Kuala Lumpur Court Complex through the firm Adnan Sharida & Associates today. KL Karnival is the sole plaintiff, while the Malaysia Stadium Corporation is the sole defendant.

KL Karnival claimed that the corporation - a statutory body under the Ministry of Youth and Sports – was to handover the land near the Bukit Jalil stadium to host the “Karnival Stadium Bukit Jalil”.

It would then carry out earthworks, waterworks, electrification and other works to house 430 stalls in tents and 210 stalls in shipping containers, plus set up an area for stage performances.

It also appointed an agency to generate publicity for KL Karnival ahead of its launch on March 24, 2017.

However in January 2017, the corporation supposedly retook nearly two-thirds of the land, ostensibly for temporary use as a carpark, despite KL Karnival’s objections, and construction works for the car park disrupted the preparation and launch for the event.

KL Karnvial said it had to proceed with the launch - albeit without the hawkers - despite these disruptions because the stage, sound system, and artistes had all already been paid for, and the event was already widely publicised.

'Many customers who came turned back'

“If the plaintiff did implement the programmes it promised, surely customers who come would be disappointed.

“Unfortunately, many customers who came had to turn back because the site was full of heavy machinery and construction materials and the entrance was blocked and muddy. Some customers who came were also disappointed because there were no hawkers and only stage performances and other events.

“This had given a poor image and negative impact towards KL Karnival,” it said.

Following this setback, the company said it then aimed to commence operation for Ramadan, but could not do so because the Malaysia Stadium Corporation would not handover the remaining land, ostensibly because its contractor had yet to return it to the corporation.

Eventually during a meeting on Oct 6, 2017, KL Karnival said the corporation’s management told it to cease operations because the land would instead be handed to a developer at the end of the year.

In the meantime, the hawkers that were meant to set up stalls at the site were losing patience. KL Karnival said its executive chairperson Muhamad Rustam Roshandin was arrested under Section 402 of the Penal Code for cheating in December last year.

While in police custody, the police supposedly informed Rustam that 630 hawkers have lodged 120 police reports against him. The hawkers had also supposedly filed a suit against KL Karnival.

Khairy's intervention was sought

Following the arrest, KL Karnival said it had sought the intervention of the then Youth and Sports Minister, Khairy Jamaluddin Abu Bakar, on Jan 10 and on Feb 10.

KL Karnival said it was offered a stadium near Jalan Duta as replacement, but it rejected the offer because the location was deemed unsuitable and the stadium’s car park was too small.

“We also informed the minister that we no longer have any capital because we have invested RM5 million on the old location and owe RM2 million to our suppliers, whereas the hawkers also objected and want their money back,” it said.

KL Karnival said it was also given the same offer in further meetings with the Malaysia Stadium Corporation, but insisted it wanted its money back.

In addition to the RM41.6 million claim, the company also sought a five percent per annum interest starting on March 1, 2017 until the disposal of the case.

It also demanded legal fees, the cost of the suit, and any other relief deemed suitable by the court.