BY Aileen P. Refuerzo
BAGUIO CITY – The city government is poised to press anew the Bases Conversion Development Authority to pay in cash its mounting obligation to the city government for the rental of Camp John Hay.
Mayor Reinaldo Bautista Jr. said Thursday he is scheduled to meet with BCDA president and chief executive officer Narciso Abaya this Wednesday to discuss debt settlement options in the wake of the city council’s denial of the BCDA’s earlier offer to offset the debt with properties and golf shares.
The mayor said that in the meeting, he will emphasize to Abaya the city’s need to collect the debt in cash to fund developmental projects in dire need of financing.
City legal officer Melchor Carlos Rabanes meanwhile is preparing another demand letter to the BCDA to resume the debt collection effort that has dragged on for several years now.
The city council earlier directed Rabanes to issue another demand letter in preparation for the filing of a case for collection of sums of money against the BCDA.
The BCDA earlier offered to pay off part of the obligation in the form of properties and golf shares with a total amount of P81,102,998. These consist of two Voice of America log home units valued at P36,801,499 each or a total of P73,602,998 and ten golf shares valued at P750,000 per share or a total of P7,500,000.
But the council rejected the offer saying it is disadvantageous and is not in accordance with the conditions attached to the lease agreement.
The city’s share from the rentals amounts to P425 million annually for the first five years starting in 1996 and P150 million annually thereafter.
As per the city treasurer’s office’s records, the city’s share stands at P681,509,159.33 as of 2005.
The city has in the past years issued several demand letters but these remained unheeded.
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