Nanhai Corporation Ltd. and Malton Berhad Ltd. have jointly filed a petition to Taiwan’s Executive Yuan on behalf of their subsidiaries, to immediately unblock the launch of their joint Taipei C1/D1 Property Development company to advance the TW$60 Billion ( US$2 Billion) project and reverse groundless national security concerns raised by the Taiwan Ministry of Economic Affairs (MOEA).
The Ministry of Economic Affairs Investment Commission (MOEAIC) announced that Nanhai Development Ltd., based in Hong Kong, and Malton Berhad Ltd., based in Malaysia ( jointly referred to as “The Nanhai and Malton Team”), won the Taipei property development bid on December 27, 2018 after completing all phases of the bidding procedures, including foreign investment qualifications, project specifications and price target evaluations. The Nanhai and Malton Team deeply regrets and strongly disagrees with the MOEAIC’s sudden announcement on July 4, 2019 to refuse the winning bidder’s application to form a Specific Purpose Vehicle ( SPV ) to commence the development of Taipei C1/D1 Property Development project due to national security concerns.
The nature of the construction involved in the Taipei C1/D1 Property Development Project, which includes shopping malls, office buildings and hotels, have never been deemed buildings of national security nature, nor as fortresses or national defense construction categorized under Taiwan’s Fort and Fortress Zone Act (要塞堡壘地帶法). The Nanhai and Malton Team has passed all phases of foreign investment qualifications and evaluations, and their project plans have been subject to urban design review, cultural assets review, and been approved after meeting the requirements certified by the Taipei government.
MOEAIC suddenly identified the C1/D1 Property Development Project as a matter of national security located in the area of important transportation hub in the capital city (位處首都重要交通樞紐範圍) months after approving the most favored bidder. However, after detailed examination of relevant Taiwan domestic regulations by our legal team, including the National Security Act (國家安全法), Fort and Fortress Zone Act (要塞堡壘地帶法), Urban planning Act (都市計畫法), Public Mass Rapid Transit Act (大眾捷運法), Railway Act (鐵路法), the C1/D1 property development project does not involve elements of national security as stated in the aforementioned regulations in 2018 or present. Also, the Nanhai and Malton Team does not fall under Article 7 of the Foreign Investment Ordinance - Prohibition and Restrictions, as no public or social evaluation have been provided to prove that it would be detrimental to national security, public order, good customs or national health. Therefore, the revocation to launch the joint project company to begin the C1/D1 Property Development due to national security concerns by the MOEA is not supported by statutory and regulatory requirements, and contrary to the facts.
The Nanhai and Malton Team has repeatedly complied fully with all the requirements and requests for additional data and information by the MOEAIC. However, national security concerns were never raised by the MOEAIC. The sudden groundless dismissal of the application to form such SPV due to alleged “national security concern” has caused the Nanhai and Malton Team significant damages to its company and shareholders’ rights, interests, business and reputation both domestically and globally. The Nanhai and Malton Team requests the immediate rectification of MOEAIC’s refusal.
The Nanhai and Malton Team has also complied with all the requirements and cooperated fully with the Taipei government to complete strict examination procedures to confirm the validation and certification of the financial, business, and management structures, and received final approval in eligibility to invest in the C1/D1 Property Development Project. Due to the unexpected and legally groundless accusation by the MOEAIC, the Nanhai and Malton Team is unable to proceed with the original proposed contract signing schedule, and requests an extension by the Taipei City Government on the project’s contract processing dates while the dispute is pending in court, until the relevant litigation procedures are finalized. This is to avoid the infringement of the rights and interests of the winning applicant, the interests of the landlords, the timely advancement of the project and the core values of the Taipei and Taiwan people. Taiwan is a democratic society, all branches of government must perform its duty under the rule of law, with no exception. The Nanhai and Malton Team will continue to comply with the process as long as the project continues to be under the administration of law, equal justice guaranteed by statutory and regulatory procedures, and social equality safeguarded in an investment and global business friendly environment free from political sabotage or irrelevant influences.
( For Reference and Citation: the original press release in Chinese : http://www.taipeicityone.com/Mobile/Details/26)