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
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
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."
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
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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.
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.
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