BCDA seeks P3.2-B court bond for John Hay lessee

BAGUIO CITY  - The state-owned Bases Conversion and Development Authority (BCDA) has asked the regional trial court here to increase the bond to be posted by the Camp John Hay Development Corp. (CJHDevCo) from P736 million to P3.2 billion to cover the lessee’s total financial obligations to the government.

           

RTC Judge CletoVillacorta III earlier ruled that CJHDevCo should post a P736-million bond before the writ of preliminary injunction can take effect.

           

BCDA has placed CJHDevCo’s total arrears at P3.077 billion.

           

In a hearing held May 24, BCDA lawyers moved that the bond be increased to P3.2 billion.

The amount supposedly includes CJHDevCo’s rental arrears to the government, plus P162 million as one-year rent payment for the duration of the injunction case.

           

“The probable damages that the injunction will cause to the government will be covered by the bond. This will ensure that the government justly gets what is due it,” said BCDA president ArnelPaciano Casanova.

           

CJHDevCo filed the injunction case after it unilaterally rescinded the restructuring memorandum of agreement with the BCDA. 

           

CJHDevCo’s move was seen as an alleged ploy to evade paying its obligations with the BCDA.

           

“Justice has to be served in John Hay if the injunction is to take effect. Let government’s interest be covered by that bond and let CJHDevCo show good faith by at least putting up the bond prescribed by the court,” Casanova said.

           

But CJHDevCo said the BCDA is not in a position to demand P3 billion as rental because the company has been up-to-date in its payments.

           

In its reply last May 23 to the notice of termination issued by the BCDA, CJHDevCo chief operating officer and executive vice president Alfredo Yñiguez said the firm has already paid P1.4 billion in rentals despite the fact that the BCDA was unable to deliver properties that could be developed, as required in their contract.

           

The CJHDevCo said it will reserve its right to file cases against the BCDA should it take over Camp John Hay.

           

“Our contract mandates that we first go through the process of arbitration. The BCDA refused to even acknowledge this procedure. Do they think that they are above the law?” Yñiguez said. 

           

The court set the oral arguments on BCDA’s motion on June 8.