DOJ junks 50 cases vs Camp John Hay execs

The Department of Justice (DOJ) junked 50 cases of malversation of public funds filed by the Bases Conversion and Development Authority (BCDA) against the 12 executives and officers of Camp John Hay Development Corporation (CJHDevCo), the developer of the former rest and recreation base for the American soldiers, for insufficiency of evidence. 

In a resolution promulgated by the Prosecution Attorney Omar CrisCasimiro, and approved by Senior State Prosecutor Richard Fadullon, the DOJ junked for lack of evidence the complaints of BCDA president Arnel Casanova against CJHDevCo directors William Russell Sobrepena, Atty. Enrique A. Sobrepena Jr., Rafael Perez de Tagle Jr., Amb. Raul Goco, Atty. Silvestre Bello III, Noel Carino, Bobby Cafe, Dennis Ignacio, and officers GulshanBedi and Atty. Manuel Ubarra Jr., and CJH Hotel officers Ramon Cabrera and Heinrich Maulbecker.

In his complaint, Casanova charged the CJHDevCo directors and officers with malversation of public funds for allegedly having withheld income based on a leaseback agreement that the BCDA has with CJHDevCo for 26 hotel rooms at CJHDevCo-run hotels The Manor and The Suites (now renamed Forest Lodge). Casanova demanded an immediate turnover of the subject hotel rooms from CJHDevCo.

The DOJ, however, found no merit to the allegation and instead upheld the legality of the Leaseback Agreement signed by BCDA in favor of the John Hay developer, which forbid a turnover of the BCDA-owned hotel rooms back to BCDA until after the lapse of the 15-year lease period.

In its resolution, the DOJ cited the provision in the Leaseback Agreement, which stipulated “there shall be no pre-termination of the Leaseback Agreement by either party during the initial fifteen-year period of the Leaseback Agreement.”

In ruling against BCDA, the DOJ prosecutor said: “Since the existence of valid Leaseback Agreement was admitted by both parties, its provisions should be properly observed. The same is likewise true as regards the charge of Failure to Make Delivery of Public Property punishable under Article 221 of the Revised Penal Code. Although BCDA already demanded the immediate turnover of the 26 subject hotel room units, CJHDevCo’s refusal to do so was justified pursuant to Section 6 of the Leaseback Agreement.”

The DOJ pointed out “with regard to BCDA’s rental income in The CJH Suites Hotel, the inquiry of the undersigned is limited to evidence submitted by the parties and the careful examination of the same would reveal that CJHDevCo was indeed suffering from a loss in the operations of the said hotel. Thus, there is no malversation in the said rental income.”

Ironically, it was the refusal of BCDA itself to issue permits to the CJH Suites that caused it to suffer losses. So the refusal seems calibrated to allow BCDA to file fabricated charges against CJHDevCo and its officers, the DOJ prosecutor noted.