BAGUIO CITY
-- The Court of Appeals has allowed the private developer of Camp John Hay here
to proceed with the sale of securities for operation of The Manor Hotel,
earlier contested by the Bases Conversion and Development Authority.
The Sixth
Division of the appellate court granted the petition of Camp John Hay
Development Corp. and permanently enjoined the Securities and Exchange
Commission from implementing its cease and desist order against the sale.
The CA also
dismissed the complaint filed by the state-run BCDA against the private
developer.
The CA said
the SEC violated CJHDevCo’s right to due process in issuing the CDO in June
last year.
“At the very
least, petitioners should have been given the opportunity to explain and answer
the allegations propounded to them prior to the issuance of the assailed
order,” Associate Justice Hakim Abdulwahid said in the decision.
Associate
Justices Marlene Gonzales-Sison and Edwin Sorongon concurred with the ruling.
In its
complaint, the BCDA claimed that the sale of the units of The Manor and
The Suites with leaseback or money back arrangements should be regarded as
investment contract or sale of securities, which requires prior registration
with the SEC.
The CA said
the SEC erred in its findings noting that the sale of the units with leaseback
or money-back arrangement does not include investment of money.
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