The arbitration committee is finally coming out with its
decision on the long-festering quarrel between Camp John Hay Development Corp.
(CJHDevCo), developer of the former American recreation camp, and the Bases
Conversion and Development Authority (BCDA). The latter under Arnel Casanova is
trying to forcibly take over CJHDevCo hotels and other developments allegedly
because the developer is behind in its lease payments. CJHDevCo, on the other
hand, claims that the BCDA has been withholding permits so it cannot develop
the full 18 hectares leased by it. So CJHDevCo filed for arbitration.
The board of
Camp John Hay Development Corp. (CJHDevco) has been cleared by the Department
of Justice (DOJ) in an estafa case filed by the Bases Conversion and
Development Authority (BCDA).
In a
36-page decision penned by prosecution lawyer Caterina Paeg of the DOJ that was
released last week, CHJDevco board members were cleared due to the lack of
evidence in their personal participation in the commission of estafa alleged by
the BCDA.
BCDA
had accused CJHDevco of estafa, claiming the developer incurred losses in 1999
when it in fact declared dividends to its board, allegedly resulting in
foregone revenues to the BCDA.
CJHDevco
explained it never asked to escape but only to defer payment of its second year
lease, amounting to P425 million for the rental of Camp John Hay, a proposal
that was accepted by the BCDA in a signed Revised Memorandum of Agreement.
The
resolution of the prosecutor also enumerated the breaches committed by BCDA as
relayed by the respondents, including failure to deliver clean possession to
CJHDevco of 32 hectares of the leased property crucial to development; failure
to demolish structures within the leased property necessary to turn-over
effective control and possession of critical portions of the leased property;
failure to enter into the necessary agreement with the Bureau of Customs to
implement duty incentives within the John Hay Special Economic Zone; failure to
assist CJHdevco in securing an Environmental Compliance Certificate (ECC)
critical to its timely development.
The
big question is why the BCDA under Arnel Casanova wants to take over CJHDevCo’s
hotels when the latter has done a wonderful job not only for Baguio
Tourism but also for the preservation of the last sanctuary of pine trees. Maybe so the
project can be given to another developer?
1 comment:
They should cooperate with each other and work towards the future. If BCDA has other intention than replacing Sobrepena Group to Ayala Land, then, maybe that’s the main purpose why. The local government of Baguio needed the revenues coming from Camp John Hay, to enable them to uplift the citizens living conditions.
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