High-speed rail project blasted

The China Aviation Development Foundation's (CADF, 航發會) decision to invest in Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) was simply an investment move and the government would seek to rectify any procedure that the court deemed illegal, Premier Su Tseng-chang (蘇貞昌) said during the question-and-answer session at the legislature yesterday.

"I will not cover up anyone's mistakes, but neither can I say that the foundation made an illegal decision. We will do what we have to do according to the law," Su said in answer to a question posed by Chinese Nationalist Party (KMT) Legislator Joanna Lei (雷倩) in the legislature yesterday.

The Taipei District Court said in January that the sudden change in CADF's organizational rules violated the administrative rule and thus overruled its decision to invest in THSRC.

CADF's secretary-general Lai Tsai-sheng (賴再生) said yesterday the court merely overruled the part in which CADF failed to follow the rules when it convened the board meeting.

He said, however, the foundation decided to purchase the share within five days, which fulfills the requirement stated in the foundation's organization rules.

"The deal does not break any law," Lai said.

Su yesterday said that since THSR construction is a major national construction project, the government will continue to support this project.

In response to People First Party (PFP) Legislator Chung Shao-ho's (鍾紹和) question, Minister of Transportation and Communications Kuo Yao-chi (郭瑤琪) said that her ministry would continue to stand behind the foundation's investment in THSRC, adding that the ministry would not withdraw the investment.

"I think [the investment] was correct as it can help CADF make profits in the future. Also, if CADF did not make the investment, the government might have to spend NT$30 million (US$924,214) [to buy back the construction]," Kuo said.

The Taipei District Court's ruling on the CADF case prompted the KMT and PFP caucuses to hold a joint press conference to lash out at the government's action.

KMT caucus whip Pan Wei-kang (潘維剛) demanded that the government withdraw NT$18 billion from the THSRC.

"The amount included NT$4.5 billion from CADF and bank loans of NT$13.5 billion by the THSRC," Pan said.

PFP caucus whip Lee Hung-chun (李鴻鈞) demanded that the government ask for the money back or the PFP caucus would freeze the Ministry of Transportation and Communication's (MOTC) budget.

Democratic Progressive Party caucus whip Chen Chin-jun (陳景峻) also criticized the government for letting itself be manipulated by the THSRC.

"The initial BOT contract stated that the government didn't have to spend anything on the project. But now 70 percent of the corporation's capital was funded by the government, and it seemed that this big business has controlled the government," he said.

In other developments, the MOTC last night announced that the Cabinet has approved the appointment of Kuo as the new CADF chairman.

MOTC Vice Minister Oliver Yu (游芳來) said in a press conference last night that a temporary board meeting is likely to be convened by the end of the month should all the preparation be completed.

Yu also disclosed that the board would propose changes to the organization rules for the board meetings, which dictated that the foundation inform the board members about the meeting at least 10 days before it begins.