BCDA welcomes Baguio court order for John Hay leseee to post P736 bond

BAGUIO CITY -- The Bases Conversion and Development Authority (BCDA) welcomed the decision of the Baguio regional trial court (RTC) ordering the Camp John Hay Development Corp. (CJHDevCo) to post a P736-million bond to put in effect the writ of preliminary injunction filed by the John Hay lessee.

           

With the order, the court rejected the P31-million offer made by CJHDevCo to prevent a government takeover of its leased properties in Camp John Hay, and upheld the original amount of the bond to protect government’s interest.

           

In a statement, BCDA president and CEO ArnelPaciano Casanova said the court order simply confirmed the validity of the arbitration clause in the contract and directs both parties to observe this, and never touched on the merits of the case.

           

“The arbitration clause in our contract does not in any way impinge upon or prevent the BCDA from exercising its rights,” Casanova said.

           

He added there is nothing in the court order that says the BCDA cannot exercise its remedies under the contract and existing laws.

           

But CJHDevCo yesterday asked the BCDA to comply with the court order to submit itself to arbitration and abandon its plan to take over the Camp John Hay.

           

Lawyer Manuel Ubarra Jr., CJHDevCo spokesman, said the BCDA, being a state-run firm, must comply with the court order on arbitration to settle all the disputes on the developer’s lease payment involving the development of the 247-hectare former American rest and recreation hub.     

           

CJHDevCo also questioned the reported bid of the BCDA to collect payments from locators and sub-lessees in its 247-hectare leased property.