Control Yuan: 92 Sand and Gravel Sites Illegally Occupy State-Owned Land, Requesting Improvement from National Property Administration

(Central News Agency reporter Lai Yu-chen, Taipei, 13th) Control Yuan members Tsai Chong-yi and Chen Jing-jun stated today that the Ministry of Finance's National Property Administration has long failed to effectively manage cases of sand and gravel sites illegally occupying state-owned non-public land. As of June of last year, there were still 92 such cases under supervision, occupying over 1.16 million square meters. The current compensation fee collection mechanism lacks deterrent effect and requires review and improvement.

Regarding the long-term illegal occupation of state-owned land by sand and gravel operations, the Control Yuan's Finance and Economic Committee recently adopted an investigation report by Tsai Chong-yi and Chen Jing-jun. In a press release today, the two commissioners explained that to align with national sand supply policies and industrial management needs, the National Property Administration has long adopted a 'prioritize guidance toward legalization' approach, supplemented by enhanced inspections, case management, and technological monitoring.

However, as of June 2025, there are still 92 supervised cases, with occupied area exceeding 1.16 million square meters. Among these, 25 sites have not yet faced civil litigation for removal, and six have remained unaddressed for over 20 years. Some cases have even expired under criminal prosecution statutes due to delayed handling. This indicates the National Property Administration has long lacked proactive and effective measures to deter or hold accountable illegal occupiers, failing to fully fulfill its responsibility for state property management.

The commissioners warned that without a clear, proactive, and effective deterrence and accountability mechanism, violators may develop the expectation of 'occupy first, legalize later,' creating a moral hazard of 'first come, first win.'

Moreover, the commissioners criticized the National Property Administration's long-standing practice of setting rent and usage compensation fees at 5% of the declared land value per year for occupied sites. Sand and gravel operations are highly profitable, with revenues far exceeding those of typical land uses. However, declared land values are already below normal market prices, and applying a fixed 5% rate results in compensation amounts that are significantly lower than actual operator profits, failing to reflect the true economic value and rightful returns of state-owned land.

The commissioners noted that the Ministry of Finance already allows flexible rent adjustments for state-owned public properties leased for commercial use, based on usage type, location, market conditions, and tax expenses. In contrast, the National Property Administration's rigid approach fails to reflect actual land value and occupier profits, resulting in low occupancy costs and insufficient deterrence. The Control Yuan has formally requested the Ministry of Finance to instruct the National Property Administration to review and improve its policies. (Edited by Chai Szu-chia) 1150613