Judgment of Arbitration for Xindian Depot's MeHAS Project
Regarding the dispute case of MeHAS joint development project between Taipei City government and Radium Life Tech Co., the arbitration court made a formal judgment that the ratio of rights and interests allocation be raised from 30.75% to 45.4469%, and Taipei City government has gained approval to win back more than NT$3.35 billion from Radium Life Tech Co.
For the above-mentioned judgment, the Taipei City government hereby made the following statement: At present the Control Yuan has completed the investigations into the MeHAS case in which Radium Life Tech Co. obtained illegal profits due to underestimated land value and overestimated building costs. Moreover, the Taipei City government found that the difference in the property area amounted to 8.767%. After the overall investigations instigated by the three powers of the Control, Administration and Justice, they unanimously confirmed that Radium Life Tech Co. obtained illegitimate benefits, and severely impaired the government property as well as the public benefits gained intentionally from the MRT land development system.
During the period of arbitration, though being constantly discredited by Radium Life Tech Co., the Taipei City government never gave up the decision to fight for the property rights and public benefit of Taipei citizens, and never changed the situation to allow the mega cooperation to erode public benefits. Since Radium Life Tech Co. unexpectedly appealed the arbitration for this dispute in June 2014, there have been a couple of changes on the claims which have postponed the whole procedure for almost two years, which was a longer period of time than expected. For instance, the preliminary arbitrator chosen by Taipei City government was considered by the court to be unlikely capable of conducting his duty in an independent and just way. It was also judged as unfair and unusual that he should evade and be dismissed from the arbitration. Furthermore in a total of 15 separate sessions, Taipei City government provided objective, neutral, and comprehensive statements and data; however, most of them were not accepted by court that could not wholly comply with the demands and expectations of the Taipei City government.
The government's resolution and efforts were demonstrated during this two-year arbitration session, and with Taipei City government's persistent policy, the arbitration results revealed that the property rights share be raised from 30.75% to 45.4469% of which NT $3,350,883,636 billion can be used to make up the claimed losses. The results also indicated that it is reasonable to request that the investor, Radium Life Tech Co. conduct reappraisals. Though the arbitration results did not meet unreasonably high expectations, given the avoidance of wasting social costs, the Taipei City government will still request that Radium Life Tech Co. repay NT$3,350,883,636 billion in accordance with the judgment's order. In addition, Mega International Commercial Bank is designated to bear joint liability for avoiding unexpected troubles.
Based on Taipei City government's ethos--transparent core values, the arbitration results were openly published on the Website of Taipei City Department of Rapid Transit Systems (DORTS). The general public are welcome to review the results and make comments.