Hopes dim for settlement of John Hay lease-rent tiff

By Aileen P. Refuerzo

BAGUIO CITY – Hopes dimmed for an out-of-court settlement between the Bases Conversion Development Authority (BCDA) and the Camp John Hay Development Corporation (CJHDevCo) over controversial lease rental issues for Camp John Hay.

           

 Mayor Mauricio Domogan who last week vowed not to give up in convincing the two parties to go to the negotiating table showed signs of resignation.

            “Sad to say that all our efforts to make them sit together have failed.  I think at this point, it is best to leave the matter to the courts,” the mayor said last week.

            The mayor rued the city’s predicament as a result of the standoff between the parties.

            “Unfortunately, the city is caught in the middle of this dispute being a party in interest (in the Camp John Hay development deal).  We will definitely suffer.  Lugitayonglahat (we will all be at the losing end),” the mayor said.

            The city stands to collect 25 percent share of the arrears unofficially placed at f P3.024 pursuant to the 19-conditionalities under Resolution No. 362, series of 1994.

            The legal battle involving the government’s takeover of Camp John Hay properties here is on as its developer denied a claim of the BCDA of multibillion-peso unpaid rentals.

            The Sobrepeña-led (CJHDevCo) dismissed the claim as part of a “smear campaign,” as it demanded BCDA officials to instead answer the cases in courts and before the Philippine Dispute Resolution Center for “breaches and failures” of contract.

            CJHDevCo chief operating officer Alfredo Yniguez, in a statement, said their firm has not incurred unpaid rental obligations to BCDA.

            “CJHDevCo is current in its rental obligations to BCDA. We dispute the reference by BCDA to P2.9-billion rentals from 2003 to 2008 because BCDA was in default during this period,” he said.

            “BCDA also failed its warranties of giving Special Economic Zone Benefits to CJHDevCo from 2003 to 2007 and its ‘30-day guaranty’ on issuance of all local and national permits for CJHDevCo projects from 2008 onwards,” he added.

            He said CJHDevCo rental payments, to date, have amounted to about P1.44 billion.

            “These payments were made despite the five-year impasse brought about by the Supreme Court decision in 2003 and the culpable delay in the issuance of building and occupancy permits which ought to have supplied CJHDevCo with the lifeblood to pay the very rentals in issue,” he said.

            Yniguez urged BCDA officials to settle the issues in legal venues.

            “The actions of CJHDevCo stand on solid grounds. CJHDevCo calls on BCDA to meet the issues head-to-head before the courts and arbitration body in accordance with existing agreements.

            But time and time again, BCDA has refused to submit itself for arbitration,” he said. – AD with a report from Aileen P. Refuerzo