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《TAIPEI TIMES》 Committee probes KMT’s 1985 building buy


The Da Hsiao Building on Taipei’s Aiguo E Road is pictured on June 8.
Photo: Chen Yu-fu, Taipei Times

The Da Hsiao Building on Taipei’s Aiguo E Road is pictured on June 8. Photo: Chen Yu-fu, Taipei Times

2018/06/17 03:00

SUSPICIOUS: The KMT will need to pay NT$782.75 million in compensation if the Ill-gotten Party Assets Settlement Committee determines that the building was acquired illegitimately

By Stacy Hsu / Staff reporter

The Ill-gotten Party Assets Settlement Committee is questioning the legality of the Chinese Nationalist Party’s (KMT) acquisition of a government-built Taipei office building in 1985 under the auspices of the Republic of China Public Service Association, a sale that the committee suspects was only allowed because the KMT was the ruling party at the time.

The Da Hsiao Building (大孝大樓), a 15-floor tower with 5,321 ping (17,590m2) of floor space on Taipei’s Aiguo E Road, was part of a government-funded urban renewal project begun in 1977, the committee said in a 28-page investigative report published on Friday.

Before the building was auctioned in 1985, several government agencies, including the Taipei Police Department and the city’s Department of Environmental Protection, expressed interest in purchasing some of the building’s floors for offices, the committee said.

Several organizations, including the Hainan Association of Taipei and a service center for the wounded and disabled, had been granted priority in purchasing the building because they had to relocate to make way for the renewal project, the committee said.

However, the committee found that even before the auction, the then-housing department of the Taipei City Government already targeted the KMT as the buyer, as evidenced by correspondence between the party, the department and the Ministry of the Interior from June 1983 to January 1985.

“To accommodate the target’s request that it be allowed to purchase the building in its entirety, the department was willing to bend the rules and negotiate with the organizations that had priority in purchasing the building about buying other properties,” the committee said.

Furthermore, by limiting eligible bidders to government agencies and non-profit associations, the department ensured that the KMT was the only entity capable of paying the auction’s starting bid of NT$431.7 million (US$14.39 million at current exchange rates), the report said.

The KMT placed the winning bid of NT$434 million by using the name of a public service association, the committee said, adding that the building was transferred to the KMT in 1989 before the party sold it to the party-controlled Kuanghua Investment Co (光華投資) for NT$1.3 billion in 2002.

Two years later, Kuanghua Investment sold the property for NT$1.45 billion to a listed property firm, which later merged with Yuan Kun Construction Co (源?建設), a subsidiary of Yuanta Construction Development Co (元大建設), which demolished the building.

As the KMT had not officially registered itself as an association in 1985, it should not have been qualified to make the bid under the public service association’s name, the committee said.

Because the building was sold to a third party and cannot be returned to the government, the committee said it would seek NT$782.75 million in compensation from the KMT if it determines that the building was acquired by the party through illegitimate means.

The committee is scheduled to hold a public hearing on June 26 to deliberate the matter.

新聞來源:TAIPEI TIMES

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