BCDA says CJHDevco cut Baguio short
Around P850 million of public funds should have been given to the people Baguio and the Cordilleras, says the BCDA chief
Around P850 million of public funds should have been given to the people Baguio and the Cordilleras, says the BCDA chief
Rappler.com
LOST PAYMENTS. The city of Baguio and the Cordillera Region could have benefitted much more from the Camp John Hay Special Economic Zone but CJHDevco did not fully pay rental payments due to the national government said BCDA. File photo from the City of Pines website
MANILA, Philippines –The local government of Baguio City could have benefitted more from the John Hay Special Economic Zone if only the private developer were more socially responsible and transparent, the Bases Conversion and Development Authority said.
BCDA president Arnel Paciano Casanova slammed the Robert Sobrepeña-led Camp John Hay Development Corporation (CJHDevco) saying that if not for the latter’s millions of pesos in arrears in rental payments to the national government, “Baguio City would have received more from its revenue share of Camp John Hay and appropriated these funds to social welfare programs.”
“Around P850 million ($18.8 million) of public funds should have been given to the people Baguio and the Cordilleras,” he added.
Casanova was speaking at a special executive and legislative session of the Baguio local government unit held on July 10, Friday.
He was accompanied by Jamie Agbayani, president of the John Hay Management Corporation, and lawyer Peter Andrew Flores, BCDA legal department head.
Mayor Mauricio Domogan and Vice Mayor Edison Bilog led local government officials in the dialogue.
Money needed for better infrastructure
“In spite of CJHDevco’s non-payment of rental for so many years, BCDA had already shared around P250 million ($5.54 million) from the revenues of John Hay, to Baguio City and neighboring local government units,” Casanova said.
Other localities that are supposed to benefit from proceeds of the John Hay Special Economic Zone are La Trinidad, Itogon, Sablan, Tuba and Tublay.
“Mr. Sobrepeña and his friends treat John Hay as their kingdom, they golf and party, they land in Baguio in helicopters and flaunt a life of extravaganza but they continuously fail to meet their obligations to the city of Baguio,” he added..
The BCDA chief cited as an example a tragic incident in August 2011 where at least 3 children died from a landslide in a Hillside dumpsite which highlighted Baguio’s decaying urban landscape and need for more public funds for social welfare and infrastructure programs.
“Children like these victims would have been saved from the squalor of poverty if Baguio had gotten more funds from the shares of John Hay,” he added.
Casanova also assured the city council and Mayor Domogan that the BCDA would continue to recognize a previous council resolution called the 19 Conditionalities on the management of John Hay because it is consistent with R.A. 7227, or the law creating BCDA.
CJHDevco continuing to profit
“CJHDevco defrauded the people and the national government because while asking for loan restructuring, they are declaring at least one billion in dividends to its affiliates and business partners”, Casanova said
Up to now, and even having already been evicted by the court, CJHDevco continues to do business and profits from government-owned properties,he added.
CJHDevco has reportedly gained more than P6 billion since the original lease of agreement to develop John Hay was signed in 1996 said the BCDA.
The lease agreement has since been rescinded by a final award by an Arbitral Tribunal and the Baguio Regional Trial Court ordered CJHDevco to be evicted from Camp John Hay on April 20.
The Court of Appeals (CA), however, issued a 60-day temporary restraining order(TRO) or until July 19, prohibiting the the eviction from being carried out.
Earlier this month, CJHDevco asked the CA to protect the interest of more than 1,600 third party investors inside the former American recreational facility. – Rappler.com
$1 = P 45.09
LOST PAYMENTS. The city of Baguio and the Cordillera Region could have benefitted much more from the Camp John Hay Special Economic Zone but CJHDevco did not fully pay rental payments due to the national government said BCDA. File photo from the City of Pines website
MANILA, Philippines –The local government of Baguio City could have benefitted more from the John Hay Special Economic Zone if only the private developer were more socially responsible and transparent, the Bases Conversion and Development Authority said.
BCDA president Arnel Paciano Casanova slammed the Robert Sobrepeña-led Camp John Hay Development Corporation (CJHDevco) saying that if not for the latter’s millions of pesos in arrears in rental payments to the national government, “Baguio City would have received more from its revenue share of Camp John Hay and appropriated these funds to social welfare programs.”
“Around P850 million ($18.8 million) of public funds should have been given to the people Baguio and the Cordilleras,” he added.
Casanova was speaking at a special executive and legislative session of the Baguio local government unit held on July 10, Friday.
He was accompanied by Jamie Agbayani, president of the John Hay Management Corporation, and lawyer Peter Andrew Flores, BCDA legal department head.
Mayor Mauricio Domogan and Vice Mayor Edison Bilog led local government officials in the dialogue.
Money needed for better infrastructure
“In spite of CJHDevco’s non-payment of rental for so many years, BCDA had already shared around P250 million ($5.54 million) from the revenues of John Hay, to Baguio City and neighboring local government units,” Casanova said.
Other localities that are supposed to benefit from proceeds of the John Hay Special Economic Zone are La Trinidad, Itogon, Sablan, Tuba and Tublay.
“Mr. Sobrepeña and his friends treat John Hay as their kingdom, they golf and party, they land in Baguio in helicopters and flaunt a life of extravaganza but they continuously fail to meet their obligations to the city of Baguio,” he added..
The BCDA chief cited as an example a tragic incident in August 2011 where at least 3 children died from a landslide in a Hillside dumpsite which highlighted Baguio’s decaying urban landscape and need for more public funds for social welfare and infrastructure programs.
“Children like these victims would have been saved from the squalor of poverty if Baguio had gotten more funds from the shares of John Hay,” he added.
Casanova also assured the city council and Mayor Domogan that the BCDA would continue to recognize a previous council resolution called the 19 Conditionalities on the management of John Hay because it is consistent with R.A. 7227, or the law creating BCDA.
CJHDevco continuing to profit
“CJHDevco defrauded the people and the national government because while asking for loan restructuring, they are declaring at least one billion in dividends to its affiliates and business partners”, Casanova said
Up to now, and even having already been evicted by the court, CJHDevco continues to do business and profits from government-owned properties,he added.
CJHDevco has reportedly gained more than P6 billion since the original lease of agreement to develop John Hay was signed in 1996 said the BCDA.
The lease agreement has since been rescinded by a final award by an Arbitral Tribunal and the Baguio Regional Trial Court ordered CJHDevco to be evicted from Camp John Hay on April 20.
The Court of Appeals (CA), however, issued a 60-day temporary restraining order(TRO) or until July 19, prohibiting the the eviction from being carried out.
Earlier this month, CJHDevco asked the CA to protect the interest of more than 1,600 third party investors inside the former American recreational facility. – Rappler.com
$1 = P 45.09
Camp John Hay returns to BCDA
(UPDATED) The CJH Development Corporation is ordered to vacate Baguio’s Camp John Hay and return the property to the Bases Conversion and Development Authority
MANILA, Philippines (UPDATED) – It was a victory for the government, as an arbitration committee ordered CJH Development Corporation (CJHDevco) to vacate Camp John Hay in Baguio City and return the property to the Bases Conversion and Development Authority (BCDA).
BCDA is the government agency mandated to develop Camp John Hay, a former US facility.
The 690-hectare property, originally developed for rest and recreation of employees of the US military and Department of Defense, was turned over to the Philippine government on July 1, 1991. It was initially administered by the Philippine Tourism Authority (PTA) and then turned over to BCDA.
“We see this as a victory for [the] government. Finally it will be returned and it can now be developed for the benefit of the public,” BCDA president and chief executive officer Arnel Paciano D. Casanova said Thursday, February 13, on the decision dated February 11, 2015.
But BCDA is tempering its celebratory mood on this legal victory as the body still has to study the decision and weigh their legal options.
CJHDevco has not been paying the BCDA its lease rentals and its arrears have ballooned to over P3.4 billion ($76.83 million), 25% of which should have been for the local government of Baguio.
The tribunal, chaired by Mario E. Valderrama, said since it cannot be determined which of the parties first violated the first 2008 restructuring memorandum of agreement (RMOA), it is then deemed extinguished due to the mutual breach of the same by both parties.
The decision added that the termination by respondent of the original lease agreement is a breach of the same by claimant CJHDevco.
“The claimant is ordered to vacate the leased premises and promptly deliver the leased property, inclusive of all new constructions and permanent improvements introduced during the term of the lease as reckoned from the execution of the original lease agreement to respondent in good and tenantable condition in all respects, reasonable wear and tear excepted,” the decision said.
CJHDevco is also ordered to pay its rentals in arrears amounting to P2.4 billion ($54.24 million), said in a separate opinion by co-arbitrator Teodoro Kalaw IV.
Orderly transition
BCDA is now calling on investors in Camp John Hay to work with the agency for the proper development of the property.
“Whatever agreement they entered into with CJHDevco no longer applies because their subleases have been terminated with the principal lease,” Casanova said in a statement released Friday, February 13.
CJHDevco has been ordered to vacate the property and they should do so immediately, Casanova stressed.
CJHDevco has been ordered to vacate the property and they should do so immediately, Casanova stressed.
"We want to ensure the security in Camp John Hay and prevent sabotage, pilferage, and the destruction of property,” Casanova said.
The public is also forewarned that CJHDevco no longer has the legal authority to do business within the zone.
The public is also forewarned that CJHDevco no longer has the legal authority to do business within the zone.
In May 2012, BCDA terminated the lease of CJH Development Corporation (CJHDevCo) over the 247-hectare Camp John Hay Economic Zone for its failure to perform its obligations and for defaulting in its lease payments despite 3 restructurings.
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.
In a decision dated September 30, 2014, the Court of Appeals agreed with the BCDA’s position that “it is the public that suffers for the failure of CJHDevco to fulfill its obligations.”
BCDA appeals to investors
The BCDA is calling on investors in Camp John Hay to work with it for the proper development of the former US military facility.
“We are calling on investors in Camp John Hay to coordinate with us so we can work on an orderly transition.” BCDA president and chief executive officer Arnel Paciano Casanova said. “Whatever agreement they entered into with CJH Development Corporation (CJHDevco) no longer applies because their subleases have been terminated with the principal lease.”
The arbitration committee has ordered CJHDevco to vacate Camp John Hay and return the property to the BCDA in a decision dated February 11, 2015.
“CJHDevco has been ordered to vacate the property and they should do so immediately. We want to ensure the security in Camp John Hay and prevent sabotage, pilferage and the destruction of property,” Casanova said.
With the arbitral decision, the public is forewarned that CJHDevco no longer has the legal authority to do business within the zone. – Rappler.com
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