Ministry of the Interior officials said yesterday that the compensation bill passed by Chiayi City Council violates the Local Government Act (地方制度法) and is therefore void.
Chiayi City Council on Thursday passed the Autonomous Recession Compensation Act (退職慰問金自治條例) which would allow councilors who have served five terms to receive a minimum of NT$1.4 million (US$42,627) compensation after stepping down from the post.
The money would be withdrawn from the councilor research reserve funds and would not impact upon the "councilor fund regulations," councilors said.
However, ministry officials said that according to the local government act, city council state funds can only be used for research reasons, transportation or meal reimbursements.
The council fund regulations also state that the money will not be distributed for any other reasons than those listed above, officials said.
The council also had no right to pass such a bill, officials added.
According to local Chinese-language media sources, Chiayi City Council passed the compensation act yesterday, after Chinese Nationalist Party (KMT) Councilor Huang Kuo-tsuen (黃國村), who failed in his Dec. 3 re-election bid, suggested it on Thursday.
Huang has already served five terms and is about to step down from his post.
Ministry officials added that currently, seven members of Chiayi City Council have served five terms, two of whom lost their seats in the Dec. 3 elections.
Factoring in increases, councilors could possibly net up to NT$2.2 million in compensation if the bill were to come into effect.
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