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.