Monday, May 25, 2015

THROWBACK SERIES: The CAP Scandal—NEVER AGAIN !!!

Government warns Camp John Hay tenants could end up like CAP plan holders

By: InterAksyon.com
March 17, 2015 9:38 AM

InterAksyon.com means BUSINESS

MANILA – The government is not honoring the contracts that the Sobrepeña Group had signed at the Camp John Hay.

In a statement, state-owned Bases Conversion and Development Authority (BCDA) said Sobrepeña-led Camp John Hay Development Corporation (CJHDevCo) is liable to the sub-lessees, sub-locators and buyers of properties at the former U.S. base-turned-economic zone.

“Contrary to what the CJHDevCo has claimed, the BCDA is not privy to the contracts so how could the BCDA honor it,” Peter Paul Andrew Flores, the agency’s head for legal services, said.

Since 2011, BCDA, through the John Hay Management Corporation (JHMC), had been asking CJHDevCo to furnish the government will copies of all contracts and other documents pertaining to the residential homes, estates and condotels within the leased area, but to no avail. JHMC is BCDA’s management arm for Camp John Hay.

John Hay sub-lessees, sub-locators and buyers

to seek legal counsel so they don’t end up holding

“worthless piece[s] of paper [similar to] what

happened [at] the CAP.

In turning down the government’s request for copies of the said contracts, CJHDevCo chief operating officer Alfredo R. Yniguez III, in a November 11, 2011 letter to JHMC president Jamie Eloise Agbayani, said: “Owing to the nature of all these contracts which outline sensitive and confidential commercial, contractual and financial information, and which are not to be disclosed to anyone without the express written authorization of the parties involved, we regret to inform you that CJHDevCo is under no clear obligation to furnish JHMC such copies.”

Since it didn’t furnish BCDA or JHMC copies of the contracts, then CJHDevCo “is liable to the sub-lessees and sub-locators,” Flores said, adding that they “should go after CJHDevCo.”

BCDA president Arnel Paciano D. Casanova warned the Camp John Hay sub-lessees, sub-locators and buyers to seek legal counsel so they don’t end up holding “worthless piece[s] of paper [similar to] what happened [at] the College Assurance Plan (CAP).

The Sobrepeñas also own CAP, which defaulted on its obligations to pre-need plan holders.

Casanova said the only way for CJHDevCo’s victims to recover their investments is to lay claim to the P1.42 billion in lease payments that the company had made to BCDA.

To recall, an arbitration panel formed by the Philippine Dispute Resolution Center Inc (PDRCI) had ordered CJHDevCo to vacate Camp John Hay and turn over all improvements made in the leased area. In turn, BCDA was told to return to CJHDevCo the P1.42 billion lease it already paid the government.

CJHDevCo however has incurred P3.4 billion in lease payment arrears, of which P850 million should go to Baguio City.

THROWBACK SERIES: A notorious CJHDevco business scheme

Korean lessee sues CJHDevco

Philippine Daily Inquirer 1:41 AM | Tuesday, May 8th, 2012
Read more: http://newsinfo.inquirer.net/189363/korean-lessee-sues-john-hay-developer#ixzz3bDPsQC6U
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook

BAGUIO CITY—A Korean filed fraud charges against 11 board members of the developer of Camp John Hay for allegedly deceiving him into leasing a hotel unit that he may not be able to use for the next 50 years as promised.

In an April 23 complaint with the Department of Justice (DOJ), Kim Sung Hwan said he and his father, Kim Chang Sik, acquired a 50-year lease over Suite No. 447 of Camp John Hay Suites from Camp John Hay Development Corp. (CJHDevco) in December 2006 for P5.7 million.

Kim claimed that the suite was delivered to him unfinished in August 2011 only.

He asked the DOJ to file criminal charges against Robert John Sobrepeña, Ferdinand Santos, Enrique Sobrepeña Jr., Noel Cariño, James March Thomson, Silvestre Bello, William Russel Sobrepeña, Raul Goco, Jose Nuñez, Rafael Perez de Tagle Jr. and Laurito Serrano.

He accused the officials of “intentionally deceiving [the Kim family] … through their scheme, making false pretenses … to collect payments, for failing to deliver CJH Suite No. 447 on the promised schedule and of the promised quality as agreed upon, and for misrepresenting that CJHDevco has the right over the properties for 50 years.”

Kim Sung Hwan was among the 11 Koreans who inquired into advertisements posted by the Bases Conversion and Development Authority (BCDA), which contested the 50-year rental contracts that were marketed by CJHDevco.

The BCDA and CJHDevco are locked in a debt feud that spun out into three legal suits early this year.

Antonio Yñiguez, CJHDevco executive vice president and chief operating officer, had described the advertisements as a form of sabotage.

In a joint letter of inquiry to BCDA President Arnel Paciano Casanova dated April 25, the Koreans said: “Several weeks ago, we were surprised to see several press releases made by you and the CJHDevco over the issue of whether or not the actual leasehold rights granted by you to CJHDevco were for 25 years or 50 years.”

Concern

“We were very much concerned about this issue as we have purchased and invested money on our properties, relying on CJHDevco’s representations and assurances that we could make use of our properties until October 2046, with the possibility of renewing our stay thereon,” they wrote.

They told the BCDA that they took out long-term lease contracts for units at Camp John Hay Suites, Forest Cabins and lots offered by the firm’s country, forest and golf estates projects.

Yñiguez on Sunday said the BCDA advertisements were not true. “The [CJHDevco lease contract to develop the former American rest and recreation baseland] is 25 years plus 25 years renewable at the option of the lessee. This has to be honored by the BCDA since they were party to the original lease contract in 1996,” he said.

“Four directors of the BCDA were [part] of the board of CJHDevco from July 2008 to December 2011. Therefore, they knew everything that was happening and everything was transparent,” Yñiguez said.

In his complaint, Kim said: “In all verbal and written representations made by CJHDevco and its representatives, they intentionally deceived the purchasers that they could sell properties inside Camp John Hay for use for 50 years or until 2046 to entice purchasers to pay them the purchase price or lease consideration.”

“CJHDevco sold us CJH Suites Unit 447 for and in consideration of P5,703,811,” Kim wrote in his affidavit. He said his father paid a P50,000 reservation fee on Dec. 29, 2006 for the unit upon the guarantee they would use it six months after completing the payments. Frank Cimatu, with a report from Vincent Cabreza, Inquirer Northern Luzon

Read more: http://newsinfo.inquirer.net/189363/korean-lessee-sues-john-hay-developer#ixzz3bDO3BCXX

***

KOREAN FAMILY, EX CONGRESS LEADER’S FIRMS SUE JOHN HAY DEVELOPER FOR ESTAFA

By: Ace Alegre

Posted: 14-May-2012 / 2 years 51 weeks ago

"Leased John Hay Until 2021 Only, Not 2046?"

BAGUIO CITY – All eleven board members of the Camp John Hay Development Corporation (CJHDevCo) are facing estafa lodged by a Korean family and three firms owned by former House of Representatives leader for allegedly deceiving them into leasing properties at the Camp John Hay they may not be able to use for the next 50 years as promised.

In an April 23 complaint with the Department of Justice (DOJ), Kim Sung Hwan said he and his father, Kim Chang Sik, “acquired” a 50-year lease over Suite No. 447 of Camp John Hay Suites from CJHDevco in December 2006 for P5.7 million.

Kim claimed that the suite was however only delivered to him unfinished in August 2011.

He is now charging Robert John Sobrepeña, Ferdinand Santos, Enrique Sobrepeña Jr., Noel Cariño, James March Thomson, Silvestre Bello, William Russel Sobrepeña, Raul Goco, Jose Nuñez, Rafael Perez de Tagle Jr. and Laurito Serrano for “duping him” into believing he can have the suite until 2046, though the CJHDevCo only has a contract with the Philippine government for 25 years only starting 1996 or until 2021 only and not until 2046.

Kim accused the officials of “intentionally deceiving [the Kim family] … through their scheme, making false pretenses … to collect payments, for failing to deliver CJH Suite No. 447 on the promised schedule and of the promised quality as agreed upon, and for misrepresenting that CJHDevco has the right over the properties for 50 years.”

Kim was among the 11 Koreans who inquired into advertisements posted by the Bases Conversion and Development Authority (BCDA), which contested the 50-year rental contracts that were marketed by CJHDevco.

Also, three firms owned and represented by former House of Rep. assistant majority floor leader Eric Singson – Stern Realty and Development Corporation, Meehan Cellars, Inc. and Ilocos Coastal View Resorts have sued Sobrepena, CJHDevCo marketing officer Shean Bedi, Thelma Launo and Alfredo Yniguez III for estafa for duping the firms into believing they can use the over P50 million worth of land it acquired from the developer for 50 years or until 2046 also as promised.

Singson said like the Korean family, they were convinced that the acquired properties where the Le Monet hotel located along the Eco-Village area will be used until 2046.

But the BCDA has warned the CJHDevCo only has until 2021.

The BCDA and CJHDevco are locked in a debt feud that spun out into three legal suits early this year.

They told the BCDA that they took out long-term lease contracts for units at Camp John Hay Suites, Forest Cabins and lots offered by the firm’s country, forest and golf estates projects.

But Yñiguez, CJHDevCo CEO said the BCDA advertisements (in the newpapers) were not true. “The [CJHDevco lease contract to develop the former American rest and recreation baseland] is 25 years plus 25 years renewable at the option of the lessee. This has to be honored by the BCDA since they were party to the original lease contract in 1996,” he said.

(May also be seen at

www.baguiocity.com/news_article/korean-family-ex-congress-leader%25E2%2580%2599s-firms-sue-john-hay-developer-estafa+&cd=1&hl=en&ct=clnk&gl=ph)

THROWBACK SERIES: Sobrepeña's family also owns CAP which sough court rehabilitation after failing to service its pre-need planholders

The CAP Scandal—NEVER AGAIN !!!

Robert John Sobrepena, Chairman of the CJHDevCo is also affiliated with Fil-Estate Corporation, College Assurance Plan (CAP) and the Metro Rail Transit Development Corporation (MRTDevco), co-chairman of listed Global-Estate Resorts Inc, formerly known as Fil-Estate Land before his family sold the company to Andrew Tan.

Sobrepeña's family also owns CAP which sough court rehabilitation after failing to service its pre-need planholders.

In 2005, CAP was in controversy when it filed for insolvency when it filed for rehabilitation with the Makati RTC to out off paying its obligations to planholders while it is being rehabilitated.

The rehabilitation plan, which is currently ongoing, provides for reduced tuition benefits to the prejudice of beneficiaries of CAP educational plans.

If the rehabilitation plan proves unsuccessful, CAPs assets will be divided among its creditors and claimants. Earlier this year. Mr. Sobrepena opposed government plans to put more coaches to service commuters in the MRT claiming that the right to do so belongs to a company that he still has a stake in.

THROWBACK SERIES: Attempt to depart speaks volumes about his involvement in the Camp John Hay malversation case

Immigration stops Camp John Hay's Sobrepena from leaving

for US

By: Darwin G. Amojelar, InterAksyon.com

May 15, 2013 4:39 PM

(May also be seen at http://www.interaksyon.com/business/61860/immigration-stops-camp-john-hays-sobrepena-from-leaving-for-us)

InterAksyon.com means BUSINESS

MANILA - The Bureau of Immigration over the weekend stopped the chief executive of Camp John Hay's private operator from leaving the country amid malversation charges filed by the Department of Justice (DOJ), state-run Bases Conversion and Development Authority (BCDA) said on Wednesday.

In a statement, BCDA said immigration personnel asked Robert John Sobrepeña, chairman and chief executive of Camp John Hay Development Corp (CJHDevCo) to disembark from a plane prior to take-off last Saturday. The plane was bound for the United States.

“His attempted departure speaks volumes about his involvement in the Camp John Hay malversation case. We will remain vigilant until he and his cohorts are brought to justice,” Arnel Paciano D. Casanova, president and chief executive of BCDA said.

“We applaud the Bureau of Immigration for their swift actions in making sure that Mr. Sobrepeña was kept from leaving the country so that he may be made to account for his fraudulent deals,” Casanova said.

He said Sobrepeña’s attempted flight to the US is “a sign of bad faith and indicative of guilt” considering that he had called a press conference in Baguio City the day before his flight to announce that he would fight the malversation raps.

“First he declares that he will fight [the charges], and then he tries to run the very next day, before the case can even be raffled and without having been arraigned? He is clearly a flight risk, trying to delay the court process. This is a textbook display of obstruction of justice,” Casanova said.

On August 15, 2012, BCDA filed 52 counts of malversation against board and management of CJHDevCo and its subsidiary, Camp John Hay Hotel Corp (CJH Hotels).

The 22-page complaint stated that the CJHDevCo directors and officers, even after the lawful demand of the BCDA, refused to return the public properties to the government.

These properties include 16 units of the John Hay Manor Hotel and 10 units of the John Hay Suites Hotel, which area valued at a combined P121 million. The hotel units were payments in kind or dacion en pago made to BCDA in 2008, as partial settlement of CJHDevCo’s unpaid rental obligations.

The complaint further stated that CJHDevCo continues to earn from these units but refused to provide the liquidation of public funds—revenues that it earned from the use and lease of the 26 units.

On April 1, the DOJ approved the filing of two counts of malversation of funds. “In the instant case, respondents' delayed remittance of the rental income of BCDA despite repeated demands did not extinguish their criminal liability for malversation of public funds," the department said.

Sobrepeña is co-chairman of listed Global-Estate Resorts Inc, formerly known as Fil-Estate Land before his family sold the company to Andrew Tan. Sobrepeña's family also owns College Assurance Plans (CAP), which sough court rehabilitation after failing to service its pre-need planholders.

THROWBACK SERIES: CJHDevco currently owes at least P3.4 billion in unpaid rent to BCDA

Arrest warrant out for Camp John Hay's Sobrepeña

The businessman owes the Bases Conversion and Development Authority damages worth P1.15 billion. Until he is arrested or posts bail, he is considered a 'fugitive from justice'

Rappler.com Published 3:40 PM, Jun 14, 2014

MANILA, Philippines – An arrest warrant for estafa has been issued by a Pasay City Regional Trial Court against businessman Robert John L. Sobrepeña.

This was after the Department of Justice (DOJ) on Wednesday, June 10, charged him with estafa for owing the state-owned Bases Conversion and Development Authority (BCDA) damages worth P1.15 billion. (READ: Baguio's Camp John Hay chair indicted for P1.15-B estafa)

Pasay RTC Judge Pedro de Leon Gutierrez issued the arrest warrant.

BCDA president and CEO Arnel Paciano D. Casanova said that until such time that Sobrepeña is arrested or posts bail, he is "now a fugitive from justice."

Sobrepeña, chairman of the Camp John Hay Development Corporation (CJHDevCo) is also affiliated with Fil-Estate Corporation, College Assurance Plan (CAP) and the Metro Rail Transit Development Corporation (MRTDevco).

In August 2012, BCDA filed with the DOJ an estafa complaint against CJHDevCo board of directors and officials for misrepresenting the state of the company's finances, misleading the government into believing that CJHDevCo was capable of paying its annual rent.

CJHDevCo had accumulated lease payment arrears to the BCDA amounting to P3.4 billion, of which, 25% or P850 million, which belongs to the people of Baguio and surrounding municipalities.

Lease agreement

Under the terms of a 1996 lease agreement, the company was supposed to annual rent amounting to P425 million or 5% of gross revenues for the first 5 years of the lease, whichever was higher. This meant that for 1998, 1999, and 2000, the government was supposed to receive P1.275 billion in rental payments.

In 1998, Sobrepeña claimed CJHDevCo’s operations were adversely affected, resulting in losses of P1.445 billion, which was increasing daily. As a result, the agreement was first restructured in 2000.

CJHDevCo, however, concealed the fact that it declared cash dividends totalling P928 million in the years 1998, 1999, and 2000. (Editor's note: It was earlier written that CJHDevCo did not declare cash dividends totalling P928 million in the years 1998, 1999, and 2000. We regret the error.)

In its resolution, the Department of Justice pointed out, “CJHDevCo deliberately chose not to perform its rental obligations to BCDA despite knowledge of such and existence of retained earnings and other revenue.”

The DOJ resolution stated that based on its 1998 financial statements, “CJHDevCo could have very well met its rental obligation of P425,001,378 million had it chosen to do so as seen by its acts of disposing P674,065,290 by way of dividends ….”

Casanova declared the finding of probably cause against Sobrepena will "strengthen BCDA’s position in our pending arbitration case against CJHDevco at the Philippine Dispute and Resolution Center.” – Rappler.com

***

Posted: June 14, 2014

(May also be seen at

www.bcda.gov.ph/news_articles/show/405+&cd=4&hl=en&ct=clnk&gl=ph)

The Regional Trial Court (RTC) of Pasay City has issued a warrant of arrest against businessman Robert John L. Sobrepeña for the crime of estafa.

The arrest was ordered by Judge Pedro de Leon Gutierrez of Branch 119 of the RTC of Pasay City.

The warrant came at the heels of a June 5, 2013 resolution by the Department of Justice (DOJ) penned by Catherina Isabel C. Caeg to charge Camp John Hay Development Corporation (CJHDevCo) Chairman Robert John L. Sobrepeña with the crime of estafa under Article 315 (2) (a) of the Revised Penal Code.

“With the warrant out, Mr. Sobrepena is now a fugitive from justice until such time that he is arrested or posts bail,” said BCDA President and CEO Arnel Paciano D. Casanova.

CJHDevco currently owes at least P3.4 billion in unpaid rent to BCDA, the state agency governing the John Hay Special Economic Zone (JHSEZ). This unpaid rent pertains to the lease by CJHDevCo of a 247-hectare area in the JHSEZ, which includes the Manor, the Camp John Hay Suites and the golf course, among others.

The chief executive said, “Contrary to CJHDevco’s claims, we consistently upheld our end of the lease contract and—in three occasions—even agreed to amend it at their behest to give the lessee ample opportunities to make good with their commitments. Little did we know, as the DOJ resolution points out, that their representations on their finances were fraudulent and misleading. The real issue here is CJHDevco’s non-payment of lease rentals to government while declaring dividends, extending cash advances and assignment of shares amounting to P1.274B to its stockholders in 1998 to 2000.”

Casanova added, “This is a victory for government and the people of Baguio City and the Cordilleras who are entitled to 25 percent or P850M of the total arrears. BCDA is committed to collect what is due to the government under the terms of the contract. This resolution brings to justice BCDA’s claims against CJHDevCo.”

The DOJ resolution pointed out that “CJHDevCo deliberately chose not to perform its rental obligations to BCDA despite knowledge of such and existence of retained earnings and other revenues.”

The 39-page DOJ resolution also stated that “BCDA suffered damage and prejudice in the amount of One Billion One Hundred Fifty Million Four Thousand One Hundred and Thirty-Four Pesos (P1,150,004,134.00) which represents the difference between the amount it was entitled to receive under the lease agreement had it insisted on the performance of CJHDevCo’s rental obligations…”

It would be recalled that under the terms of the 1996 Lease Agreement, CJHDevCo was supposed to pay an annual rent to the BCDA of P425 Million or five percent (5%) of gross revenues for the first five years of the lease, whichever was higher. This meant that for the years 1998, 1999, and 2000, the Government was supposed to receive P1.275 Billion in rentals.

In 1998, Sobrepeña claimed that CJHDevCo’s operations were financially adversely affected by several factors and that its actual losses amount to a total of P1.445 Billion and were increasing daily. This led to the first restructured agreement in 2000. CJHDevCo, however, concealed the fact that it declared cash dividends totalling P928 Million in the years 1998, 1999, and 2000.

“We believe that the DOJ finding of probable cause against Mr. Sobrepena for the crime of estafa will strengthen BCDA’s position in our pending arbitration case against CJHDevco at the Philippine Dispute and Resolution Center,” said Casanova.

Robert John Sobrepena, Chairman of the CJHDevCo is also affiliated with Fil-Estate Corporation, College Assurance Plan (CAP) and the Metro Rail Transit Development Corporation (MRTDevco).

In 2005, CAP was in controversy when it filed for insolvency when it filed for rehabilitation with the Makati RTC to out off paying its obligations to planholders while it is being rehabilitated. The rehabilitation plan, which is currently ongoing, provides for reduced tuition benefits to the prejudice of beneficiaries of CAP educational plans.

Sunday, May 24, 2015

YOU CANNOT ESCAPE RESPONSIBILITY TO YOUR SUB-LESSEES

In 60 days (beginning May 19, 2015) and because of a TRO hastily given to them, the court-evicted Sobrepena group will continue to make tens of millions of profits from Camp John Hay, while NOT paying a single peso to the government, to the detriment of the people of Baguio and the Cordilleras.

CJH Development Corporation misled the Court of Appeals into believing violence would erupt in Camp John Hay

CJHDevCo misled court over Camp John Hay TRO

Published 4:28 PM, May 23, 2015

(May also be seen at http://www.rappler.com/business/industries/175-real-estate/94097-bcda-cjhdevco-camp-john-hay)

Updated 4:28 PM, May 23, 2015

TRICKED. "By misleading the CA to issue a TRO, CJHDevCo has shown its defiance and contempt towards the rule of law," BCDA says. All photos by Dave Leprozo/Rappler

MANILA, Philippines – CJH Development Corporation (CJHDevCo) misled the Court of Appeals (CA) into issuing a temporary restraining order that allowed the corporation to remain in Camp John Hay. This was the allegation of the state-run Bases Conversion and Development Authority (BCDA).

In a statement, BCDA president and CEO Arnel Paciano Casanova said, "CJHDevCo blatantly misled the Court of Appeals of various lies that formed the very foundation for the issuance of TRO."

Casanova said CJHDevCo tricked the CA "to believe there was going to be violence at the end of the 30-day notice to vacate" the former US military facility in Baguio City.

"I'm very sure that the sheriff of Baguio, who is implementing the writ of execution and the notice to vacate, and assisted by the Philippine National Police (PNP), will not start any violence," Casanova pointed out. The writ of execution obtained by BCDA orders CJHDevCo and its sublessees to vacate Camp John Hay.

“So does that mean that the Sobrepeña-led CJHDevCo has threatened to provoke violence against the Baguio sheriff?" he added.

CA TRICKED? BCDA: P1.42-billion isn't advance rental payments, but refund for its sublessees.

The BCDA chief also said that CJHDevCo misled the CA "by saying that the P1.42 billion ($31.82 million) is advance rental payments when in fact it is a refund that should be paid by CJHDevCo to the sublessees."

"The only way for the CJHDevCo’s victims to recover their investments and protect their interests is to lay claim to the P1.42 billion ($31.82-million) that the BCDA deposited in the court," Casanova said.

Rule of law

On April 20, the Office of the ex-officio sheriff of the First Judicial Region, Branch 6 of the Regional Trial Court (RTC) in Baguio served a notice against CJHDevCo and "all persons claiming rights under them" to vacate the premises of Camp John Hay.

This was after CJHDevCo on March 6 filed a judicial confirmation before the Baguio RTC to pave the way for the implementation of CJHDevCo’s exit from Camp John Hay.

"By misleading the CA to issue a TRO, CJHDevCo has shown its defiance and contempt towards the rule of law," Casanova noted.

Casanova said that the BCDA will exhaust all legal remedies, saying that it "has been consistent in respecting the rule of law."

"Our previous actions clearly show that the BCDA has abided with the orders of the judge," Casanova added.

Around 1,200 employees of hotels, golf courses, shopping centers and other recreational facilities in Camp John Hay were assured by BCDA of continued security of tenure. – with a report from Dave Leprozo/Rappler.com

(Read more at http://www.tribune.net.ph/nation/cjhdevco-misled-ca-to-issue-tro-bcda)

CJHDevCo tricked CA to issue TRO on Camp John Hay takeover

(May also be seen at

http://www.gmanetwork.com/news/story/491466/economy/companies/bcda-claims-cjhdevco-tricked-ca-to-issue-tro-on-camp-john-hay-takeover)

The Bases Conversion and Development Authority (BCDA) on Friday alleged CJH Development Corporation (CJHDevCo) misled the Court of Appeals to issue a temporary restraining order against a writ of execution ordering the CJHDevCo and its sublessees to vacate Camp John Hay.

"CJHDevCo blatantly misled the Court of Appeals of various lies that formed the very foundation for the issuance of TRO," BCDA President and CEO Arnel Paciano Casanova said.

The CA was led to believe there was going to be violence at the end of the 30-day notice to vacate the former US military facility for rest and recreation.

"I'm very sure that the Sheriff of Baguio, who is implementing the writ of execution and the notice to vacate, and assisted by the Philippine National Police (PNP), will not start any violence.

"So does that mean that the Sobrepeña-led CJHDevCo has threatened to provoke violence against the Baguio Sheriff?" Casanova noted.

Prior to the CA order, the Office of the Ex-Officio Sheriff of the First Judicial Region ordered CJHDevCo and "all persons claiming rights under them" to vacate the premises of Camp John Hay on April 20.

CJHDevCo has no authority to operate in Camp John Hay because a contract no longer exists between BCDA and CJHDevCo, according to the state-run BCDA, saying the John Hay Management Corporation (JHMC) also has not issued a permit for CJHDevCo.

"By misleading the CA to issue a TRO, CJHDevCo has shown its defiance and contempt towards the rule of law," Casanova noted.

He said CJHDevCo also mislead the CA by saying that the P1.42 billion refund the developer should pay to its sublessees consist of advanced rental payments. The BCDA has urged the sublessees to claim their respective shares from BCDA.

"The only way for the CJHDevCo's victims to recover their investments and protect their interests is to lay claim to the P1.42-B that the BCDA deposited in the court," Casanova said. – Trisha Macas/VS, GMA News

Tuesday, May 19, 2015

The Lies of CJHDevco and THE TRUTH

(Factual information to enlighten the general public on the

truth behind the issues besetting Camp John Hay.)

The Office of the Ex-Officio Sheriff of the First Judicial Region, Branch 6 of the Regional Trial Court in Baguio City served a notice on April 20, 2015 against Camp John Hay Development Corp. (CJHDevco) and “all persons claiming rights under them” to vacate the premises of Camp John Hay.

The main issue in the Camp John Hay dispute is the enormous debt of CJHDevco to the government spanning four presidents of the Republic.

It is only under the Aquino Administration that this private developer has been exposed for what it really is. Now the Court is evicting CJHDevco from Camp John Hay—a government property it benefited from while deliberately failing to deliver on its obligations to the government.

All the other issues the CJHDevco has been raising are nothing but diversionary tactics. It is aimed at drowning the obvious—the Sobrepeña Group’s intention to back out on its obligations to third party sub lessees and buyers, to our government, and to the people of Baguio City and the Cordilleras.

CJHDEVCO LIES

TRUTH

The government (BCDA) is making the private developer of Camp John Hay suffer by evicting it from its leased premises.		The Court evicted CJHDevco and its sub-lessees AND NOT BCDA. The truth is, CJHDevco ASKED AND PURSUED an arbitration process with the government. BCDA adhered to the process as it is wont to uphold the Rule of Law. The arbitral award was eventually confirmed by the Court. Then CJHDevco, who was so eager in submitting the case for arbitration and in seeking confirmation from the court, is now ADAMANT IN DEFYING THE COURT ORDER and openly going against the Court itself.
CJHDevco has the express approval of BCDA/JHMC in ALL third party sub-leases.		CJHDevco DELIBERATELY HID AND CONCEALED CONTRACTS it entered into with third party sub-lessees and buyers. In spite of repeated requests from BCDA and John Hay Management Corporation (JHMC) since 2011, CJHDevco deliberately concealed these contracts with third party sub-leases. A letter of CJHDevco COO Alfredo R. Yniguez III to JHMC dated 11 November 2011 said: “Owing to the nature of all these contracts which outline sensitive and confidential … information … we regret to inform you that CJHDevCo is under no clear obligation to furnish JHMC such copies.” Because CJHDevco deliberately hid and concealed these contracts, BCDA cannot be bound by these contracts. CJHDevco is now accountable to these buyers for concealing these contracts to BCDA.
It is the legal obligation of the BCDA to honor and respect these third party leases until they expire on October 2046.		Again, CJHDevco is misleading the sub-lessees because BCDA cannot be bound by these contracts. As held by the Supreme Court, “A judgment of eviction against a lessee affects his sub-lessee, even if the latter are not sued in the ejectment case. The sub-lessees right, if any, is to demand reparation for damages from his sub-lessor.” The 7-page order penned by Acting Presiding Judge Cecilia Corazon Dulay-Archog states that, “The Final Award (of the Arbitral Tribunal) is clear. It needs no further interpretation.” The RTC also ruled that sub-lessees and or vested rights holders “will be governed by the law on obligations and contracts.” The law on obligations and contracts applied to sub-lessees and or vested rights holders clearly states that the obligor (CJHDevCo) is liable to the obligee (sublessees) for damages that may be suffered by the obligee from the non-performance of the obligor.
The Notice to Vacate only applies to roads, forested areas, CJHDevco facilities, its employees, and security guards. Residences, log homes, hotel units and the golf course are owned by private individuals and therefore are not covered by the court’s Notice to Vacate.		The Baguio RTC decision (Acting Presiding Judge Cecilia Corazon Dulay-Archog) affirmed the arbitral tribunal’s final award that clearly rescinded the lease agreement undertaken between CJHDevco and BCDA. The tribunal ordered CJHDevco to vacate and turnover to the government “all leased premises in good and tenantable condition in all respects, reasonable wear and tear excepted.” The Sheriff’s Notice to Vacate is served against CJHDevco “AND ALL PERSONS CLAIMING RIGHTS UNDER THEM.” It says: “By virtue of the Writ of Execution issued by the Honorable Court, Regional Trial Court, Branch 6, Baguio City, dated April 14, 2015 … you are hereby notified to voluntarily / peacefully vacate the premises … and surrender / turnover the possession thereof to the respondent Bases Conversion (and) Development Authority (BCDA) within thirty (30) days from receipt of this notice.” The Notice to Vacate also ordered CJHDevco to turn over control of Camp John Hay, including the Manor Hotel, Forest Lodge, log homes and the golf course, to the BCDA. This means that CJHDevco and its sub lessees must vacate the premises of Camp John Hay on or before May 20, 2015 when the 30-day notice expires.
The BCDA is using sub-lessees as pawns in its dispute with CJHDevco. It is truly concerned about the plight of sub-lessees.		On the contrary, sub-lessees are misled and are actually being used as pawns by CJHDevco against the Court because CJHDevco is instigating sub-lessees to defy a court order. CJHDevco’s move is really aimed at avoiding its responsibility to these third party investors. By agitating them to defy a court order, CJHDevco effectively eludes their responsibility to refund its sub-lessees.
The BCDA is defying the court order by not directly paying up CJHDevco the amount of P1.42 billion.		In April 2015, the BCDA has already deposited the P1.42 billion with the Development Bank of the Philippines in escrow under the account of the Baguio RTC Branch 6, without any previous objection from CJHDevco. The disposition of the Php1.4 billion refund is now up to the Court. The BCDA will respect whether the court order is for the refund to go directly to the evicted developer, to secure new lease payments for sub lessees, to be fairly dispensed among third party claimants who wish to recover their investments, or for a portion of the fund to be allotted as revenue share to Baguio City and deserving LGUs.
REVIEW OF CJHDEVCO’S PATTERN OF LIES AND DECEPTION
CJHDEVCO LIES		TRUTH
CJHDevco’s businesses in John Hay suffered losses that it was not able to pay its obligations to government.		BCDA discovered that CJHDevco has been declaring dividends for its firm and for its stockholders while asking for restructuring in deferment of payments to the government. Records show that Sobrepena’s group declared annual dividends from the time of the contract restructuring in 1998 up to 2010 but has not remitted any amount to BCDA as rental fees. CJHDEVCO BENEFITS FROM A PROPERTY THAT IT NEVER OWNS AND, WORSE, NEVER PAYS ITS OBLIGATIONS. CJHDevco’s audited financial statements to shareholders: 1998 – P378 million in dividends 1999 – P350 million in dividends 2000 – P200 million in dividends In all the years that CJHDevco paid dividends to shareholders, it did not pay rentals to the BCDA. In fact, Mr. Sobrepena is presently on bail and is on trial for the criminal charges of Malversation of Public Funds filed by the DOJ against him before the Regional Trial Court of Baguio City. At the time when Mr. Sobrepena was asking for restructuring and deferment, he was actually receiving dividends or personal earnings. That is fraud.
CJHDevco abides by and upholds lawful and ethical business practices.		CJHDevCo has not been very forthright will all its records and contracts. It has not been filing audited financial statements to the Security and Exchange Commission (SEC). When the BCDA discovered that the company had been declaring dividends yet failing to pay rental to government, CJHDevCo stopped submitting audited financial statements to the SEC. If Mr. Sobrepena and his group are diligent and law abiding citizens, as what they repeatedly claim, why will they not file audited financial statements to SEC? Even a small entrepreneur in John Hay files this important document. This is a layman’s simple question which leads one to recall that the Sobrepena group made news during the past years for its involvement in the College Assurance Plan (CAP) fiasco and other controversial government contracts including the Metro Rail Transit 3 (MRT 3) project.
CJHDevco is transparent in its business dealings in Camp John Hay.		CJHDevco had not been very transparent and has been secretive of the way it did business in John Hay; it collects payments from third party buyers but never remitted payments to BCDA. It never disclosed and actively concealed the contracts despite repeated requests of BCDA. CJHDevco is trying to escape liability from its buyers by trying to mislead them. IT IS NOW THE RESPONSIBILITY OF CJHDEVCO TO REFUND THESE BUYERS.
		Buyers and BCDA should work together to make CJHDevco accountable for payments by buyers to CJHDevco which CJHDevco failed to remit to BCDA/JHMC. The buyers should be claiming for refund against CJHDevco.
CJHDevco has a lease hold rights with BCDA for 50 years.		The Lease Agreement between the government (BCDA) and CJHDevco is only for 25 years, renewable for another 25 and NOT a 50-year straight lease. Several sub lessees were lured by CJHDevco into leasing for a 50-year period. The original lease agreement was only for 25 years and yet CJHDevco leased out for 50 years. The option to renew happens only on the 24th year and it presupposes that you are a tenant in good standing. However, this is now irrelevant because the entire lease agreement has been voided.
CJHDevco has a lease hold rights with BCDA for 50 years.		The agreement states that: “Unless sooner terminated for reasons specified in this Agreement, this Agreement shall have a term of twenty five (25) years, renewable for another twenty five (25) years under the same terms and conditions at the option of the LESSEE, effective upon the signing of this Agreement. Within ninety (90) days immediately prior to the expiration of the 25-year period, the LESSEE shall manifest its desire to renew the lease.”
The BCDA-CJHDevco row is a bad example on the Public-Private Partnership program of the Aquino administration.		The Sobrepeña group should not use the PPP program to divert the issue. Our government should study the CJHDevco case as a consequence that should be avoided by the PPP program where the private partner will try to renege on its legal obligations while enjoying all the benefits.
CJHDevco was deprived of revenues because of the nullification by the Supreme Court in 2003 on the grant of tax and financial incentives to locators at John Hay as a Special Economic Zone.		This is a dead issue. Soon after the SC decision, the BCDA actively lobbied for the passage of RA No. 9399 (declaring a one-time amnesty on certain tax and duty liabilities incurred by businesses operating within the SEZ and Freeports) and RA No. 9400 (amending RA No. 7227 restoring the incentives inside the Freeport Zones). RA No. 9399 and RA No. 9400 are two new laws that remedied the SC nullification inside John Hay and effectively granted tax amnesty to CJHDevco. This is the reason why a deferment of payments has been granted to CJHDevco and two prior restructurings made.
CJHDevco was deprived of revenues because of the non-operation of BCDA’s One-Stop-Action Center (OSAC) for permits.		This is one of the diversionary issues of CJHDevco. To justify non-payment of its whopping P3-billion obligation, it raises the “problems” with the One-Stop Action Center (OSAC) that it demanded to be created by BCDA and its subsidiary, the John Hay Management Corporation (JHMC).
		Records show that OSAC, which is run by JHMC, granted permits to operate to 37 locators of CJHDevco in 2009, 28 in 2010, 8 in 2011 (1stQ), 126 in 2012, and 140 in 2013. In 2012, there were a total of 3,533 miscellaneous permits processed and issued by OSAC.
		In December 2011, BCDA politely declined a request from CJHDevco for ten permits for tree-cutting and earthballing that would affect more than 1,000 trees because only the DENR can issue such permits. BCDA strictly complies with environmental laws. CJHDevco wants BCDA to exceed authority by demanding tree-cutting permits. After BCDA’s refusal to grant CJHDevco’s request, CJHDevco raised the issue of “a non-functional OSAC, then unilaterally rescinded the contract and are claiming an atrocious amount of P14.4 billion from government.
		Applications for permits are received and are issued continuously. At any given time, there will always be a number of applications pending. But it does not mean that OSAC is non operational. And is that a valid reason for CJHDevco to withhold payment of its arrears?
CJHDevco does not owe the government anything.		CJHDevco’s debt has reached P3.024 billion as of December 31, 2011.
CJHDevco does not owe the government anything.		There are no questions about the amount of the arrears. The fact that CJHDevco signed a Restructured Memorandum of Agreement on July 1, 2008 was an acknowledgement of its obligations. The lease obligations of CJHDevco have gone through three restructuring agreements. During the last quarter of 2011, it sought to restructure its debt for the fourth time, but BCDA rejected a new restructuring agreement and asked CJHDevco to pay up.
Given the Sobrepeña group’s track record and achievements in business and capital investments in our country, it would be a huge loss if it vacates John Hay.		The glaring truth is most of the businesses of the Sobrepena group had failed and attended by so many controversies. Southwoods Golf and Country Club (Sobrepeña Group) In June 2011, Sobrepeña declared a no-quorum during the much-anticipated annual shareowners’ meeting of the Manila Southwoods Golf and Country Club in Carmona, Cavite. The Fil-Estate Corp, which manages the club, failed to issue some 450 stock certificates to paying members.
		College Assurance Plan [CAP] (Sobrepeña Group) CAP sold over P20 billion worth of pre-need plans in the late 1990s to early 2000. Sobrepeña is a member of the BOD of CAP while his brother, Enrique, is the president and CEO. CAP shattered the dreams of thousands of families when it went bankrupt because of mismanagement of funds. Until now, many of the CAP holders remain unpaid.
		Sobrepeña is believed to have used the millions that CAP raised toinvest in such ventures as the Edsa MRT-3 project, the Southwoods golf course, and CJHDevco.
		Metro Rail Transit Corporation [MRTC] (Sobrepeña Group) MRTC is 76 percent owned by Fil-Estate Corp which invested $300 million in the railway firm, but soon after secured a loan for $700 million with a sovereign guarantee. After that it was a simple matter of not paying back the dollar loan, which the government was obligated to pay. Fil-Estate Corp is part of an intricate scheme of overlapping corporate relationships to elude financial liability.
		MRTC has a debt of P1 billion. On July 27, 2012, the DOTC issued ademand letter for this operator of MRT 3 to immediately settle its debt. One wonders how the MRT 3, practically a goldmine with a daily ridership of some 450,000, is unable to pay its debt.
		In 2014, the DOTC was locked in a legal battle with the MRT Holdings II, which Sobrepeña chaired, for the latter’s failure to add much-needed train coaches to the rail line, after Sobrepeña claimed to own 100 percent of the Metro Rail Transit Corp.’s (MRTC). The government is now forced to offer an equity value buy-out to address problems besetting MRT-3.
		Fil-Estate Corporation (Sobrepeña Group) A desperate lot owner in the Fil-Estate-owned Forest Hills subdivision in Antipolo City claims that development work stopped some 13 years ago, leaving an unsightly white elephant behind.
		CJH Development Corporation (Sobrepeña Group) Former Deputy Speaker Eric Singson (Ilocos Norte), representing the Stern Real Estate and Development Corp., the Meehan Cellars, and the Ilocos Coastal View Resorts, filed charges against CJHDevco at the DOJ, claiming that his firms were duped into leasing John Hay properties for 50 years, even though the CJHDevco contract only has a 25-year duration.
		On April 23, 2012, Korean national Kim Sung-hwan filed the first suit of this nature against CJHDevco claiming that he and his father were deceived into leasing a unit of the John Hay Suites for 50 years.
		On June 7, 2012, the Securities and Exchange Commission (SEC) issued a cease-and-desist order against CJHDevco ordering the latter to stop selling condotel units in Camp John Hay for failing to register guarantee schemes behind the property sales.
BCDA continues to harass locators and third party sub lessees		BCDA will never respect a fraudulent contract but it will definitely protect the sanctity of contracts that have been entered into in good faith and in transparency. BCDA acknowledges and respects buyers that invested in the Camp and believed in the project from the beginning. We will continue to make them partners in the development of John Hay. BCDA HAS COMPLIED WITH THE RULE OF LAW for the refund of the P1.4-billion to CJHDevco. Now the buyers should lay a claim on this P1.4-billion refund.
BCDA reiterates that the government’s stand in the John Hay issue bespeaks of its strict adherence to the principles of transparency, accountability and good governance under the leadership of His Excellency President Benigno S. Aquino III. The public and the business sector want to end the impunity caused by CJHDevco in John Hay. As soon as CJHDevco vacates Camp John Hay and refunds its buyers, we will be able to usher in an era of prosperity and development, transparency and accountability in the John Hay Special Economic Zone for the long-term benefit of the general public, and especially of the people of Baguio and the Cordilleras.