The Chinese Nationalist Party (KMT) illegally obtained land in Taipei that was formerly the site of the Institute of Revolutionary Practice, the Ill-gotten Party Assets Settlement Committee said yesterday, ordering the party to pay NT$3.2 billion (US$114.95 million) in compensation.
From 1954 to 1974, the KMT-affiliated institute administered the land and building in Wenshan District (文山), which was known as the Chunghsing Estate (中興山莊), the committee said.
The KMT’s income from membership fees from 1953 to June 1980 comprised only 1.83 percent of the institute’s income, while government subsidies made up 85.38 percent, the committee said.
Photo: Chien Jung-fong, Taipei Times
The KMT’s solution to “balance its budget” was to ask members who were in office to increase government subsidies or transfer party work to the government, the committee said, adding that the KMT had even taken out interest-free loans from the central bank to pay institute expenses.
These are not normal actions for political parties and there is reason to believe that all legitimate income the party procured was depleted between 1953 and 1980, so the funds it used to procure the estate were illegitimate, the committee said.
As the asset has been transferred to the Taipei City Government and Yuanlih Group, 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 the KMT should pay NT$3.2 billion — the price it sold the asset for minus taxes, the committee said.
Yuanlih Group said it would donate NT$801.34 million to the state and yesterday signed a settlement with the committee.
Yuanlih bought some of the land with plans to construct residential buildings.
KMT Administration and Management Committee director Chiu Da-chan (邱大展) said that the party has the sale contract to prove that it purchased the land for much more than it had sold it for.
The committee should provide proof if it is accusing the party of having appropriated state funds for illegitimate use, Chiu said.
KMT Disciplinary Committee director Lee Guei-min (李貴敏) said that the party would take appropriate legal action.
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