The Chinese Nationalist Party (KMT) has refused to pay Cabinet-ordered compensation of NT$864.88 million (US$28.43 million) for selling properties appropriated from the Japanese colonial government, with the party saying that the properties were legally acquired and that it would appeal the order.
The Ill-gotten Party Assets Settlement Committee on June 15 ordered the KMT to pay for 458 properties appropriated from the former Japanese government, which were later sold or expropriated.
The payment was due yesterday and failure to meet the deadline could result in the freezing of assets and detention of the KMT chairperson, who acts as the party’s legal representative.
The KMT yesterday said it would launch an administrative suit against the committee’s “illegal order.”
The former Japanese properties were transferred to the KMT to compensate the party for its wartime expenses during the Second Sino-Japanese War, the party said.
The transfer was approved by a high-level decisionmaking body joined by top government and military officials and KMT dignitaries during the post-war period, and therefore the transferred properties were not ill-gotten, it said.
The KMT rejected the committee’s claim that the property transfer was made in violation of the principles of democracy and rule of law and beyond the authority of a political party, saying the transfer was completely legal.
The Act Governing the Handling of Ill-gotten Properties by Political Parties and Their Affiliate Organizations (政黨及其附隨組織不當取得財產處理條例) stipulates that a compensation order can only be given in cases where an ill-gotten property has been transferred to a third party and cannot be recovered.
The committee gave the order without first investigating the status of the properties in question, the KMT said.
Meanwhile, the committee said it would ask the Administrative Enforcement Agency to enforce the payment.
“The KMT has little cash at hand and its legal income cannot be the target of enforcement actions, so it should be the party’s real estate that is subjected to enforcement,” committee spokeswoman Shih Chin-fang (施錦芳) said.
The agency would follow due process and enforcement would not be affected unless the KMT requests a stay of execution to halt the committee’s order, but the party did not take any such action, Shih said.
Former Japanese properties should be national properties and historical data have shown how the KMT appropriated such properties, she added.
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