BCDA files estafa complaint vs Camp John Hay company

The Bases Conversion and Development Authority has filed before the Department of Justice another estafa complaint against the board of directors and officials of Camp John Hay Development Corp. for “conspiring with one another to perpetuate fraud” upon the state-run firm.  

BCDA president ArnelPaciano Casanova questioned in his complaint filed August 31 CJHDevCo’s act of claiming losses, while at the same time and unknown to BCDA, declaring dividends to its stakeholders.

“How can they claim losses during those years while they have been declaring dividends?” Casanova asked.

The 39-page complaint accused the 1998-2000 board of directors and officials of CJHDevCo of deceiving the BCDA, allegedly through false pretenses and fraudulent acts, into deferring collection of CJHDevCo’s outstanding rental obligations, causing damage to BCDA and the government.   

“CJHDevCo should be held liable for estafa under Article 315 (2)(a) of the Revised Penal Code,” the complaint read. 

BCDA said in its complaint that under the terms of the 1996 lease agreement, CJHDevCo was supposed to pay an annual rent of P425 million or five percent of gross revenues for the first five years of the lease, whichever was higher. 

This meant that for the years 1998, 1999, and 2000, the government was supposed to receive P1.275 billion in rentals, according to the complaint. 

The BCDA charged that CJHDevCo allegedly misrepresented the state of its finances and misled the state-run firm into believing that it was not financially capable of paying these annual rentals when, it truth, it could have very well done so.