Taipei City officials, accompanied by police, took over Taipei Arena in an unannounced move that surprised the company that had filed a lawsuit defending its right to keep the management of the multifunction indoor stadium.
Managers and employees of the Eastern Dome Management Company (EDMC) were blocked by police from the premises when they arrived for work in the morning, only to find that over 100 city officials were already inside the stadium doing the takeover work.
The city government has terminated EDMC's rights to running the stadium after prosecutors determined that its parent company, the Eastern Multimedia Group (EMG), had rigged the bidding process to win the Taipei Arena's management contract.
The city government had not indicated a time for taking over the stadium, but officials said they decided to move in swiftly after EDMC filed a lawsuit defending its rights over the stadium's management.
Yang Hsi-an, deputy secretary general of the city government said the move was meant to protect the property of Taipei and its citizens, preventing EDMC from continuing occupying the stadium during the litigation.
But EDMC General Manager Lin Ker-mo, who managed to enter the arena before the arrival of the city officials, described the city government's takeover as a "break-in."
He accused the city government of "using its administrative power to deal with a civil contract dispute."
EDMC Chairwoman Chiu Pei-lin, who was blocked from the stadium's premises, questioned the legal basis of the city's move.
The organizer of two upcoming concerts -- including one by the Japanese group NEWS -- at the Taipei Arena was cited by the United Evening News as saying that the events would continue as usual despite the row between the city and the EDMC.
Yang, who headed the team of officials to conduct the surprise takeover, quoted Taipei Mayor Hau Lung-bin as saying that the city government will run the stadium for one year.
Yang stressed that the business operations of stores and the ice rink at the arena will not be affected.
In a press statement, the city government said it had requested that EDMC return the arena management Aug. 17 in accordance with a bilateral contract, as well as the regulations governing contracted management of city properties.
But EDMC, having failed to pay any royalties since July, ignored to the request.
Yang said the city government had hoped for the takeover to be conducted in a peaceful manner through negotiations and mutual communication.
EMG Chairman Gary Wang, a former legislator, has been detained and indicted on several counts of financial crimes, which prosecutors said included the rigging of the bidding process to win the arena's management.
The prosecutors have also linked the EMG chairman's to alleged financial crimes committed by his father, Rebar Group founder Wang You-theng.
Prosecutors have sought 28 years for the son, and 30 years for the father, who has fled to the United States.
The EMG chairman and 31 of his associates were indicted Aug. 13.
Gary Wang's indictment prompted Mayor Hau to announce Aug. 14 his administration's decision to terminate its nine-year contract with the EMG to manage the Taipei Arena.
EMG won the contract with a bid of NT$1.58 billion in 2005 when Ma Ying-jeou was Taipei mayor.
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