Thursday, September 18, 2014

RTC clears CJH chairman of P1.15 billion estafa charges


By Dexter A. See 

BAGUIO CITY - The Chairman of the Camp John Hay Development Corp. (CJHDevCo), Robert John "Bob" Sobrepeña, was cleared by the Regional Trial Court of Pasay City of charges of estafa filed by Arnel Casanova for the State-owned Bases Conversion and Development Authority (BCDA).

In a decision dated September 3, 2014, the Pasay Court ruled that BCDA failed to establish probable cause in its accusation that Sobrepeña falsely represented to BCDA that CJHDevCo is incapable to pay rentals due for the operation of the 247-hectare Camp John Hay Special Economic zone.

BCDA argued CJHDevco deliberately chose not to perform its rental obligations to BCDA despite knowledge of such and in spite of the existence of retained earnings and other revenue.

However, the Pasay Court ruled, "To the mind of the Court, it is not the alleged misrepresentation by the accused Sobrepeña that impelled or induced complainant BCDA in the execution of the three MOAs as above quoted."

After paying lease of P425 million in its first year, due to several factors including the delay on the part of BCDA to demolish structures inside Camp John Hay and to issue the requisite Environmental Compliance Certificate, CJHDevCo and BCDA signed a memorandum of agreement on August 5, 1999 where a joint committee comprised of senior officers of both CJHDevCo and BCDA agreed to defer lease rental payment for the second year.

A MOA dated July 14, 2000, acknowledged the delay by BCDA and John Hay Poro Point Development Corp (JPDC) in the demolition of structures inside Camp John Hay resulting in the long delay in turning over possession of portions of the leased area; the effects of the Asian economic crisis; and the need for CJHDevCo stakeholders to resort to borrowings to continue development of the leased area, among other factors authorizing deferred rental payments.

The third MOA dated July 18, 2003, acknowledged that the Office of the President approved the July 14, 2000.

The Pasay Court said BCDA acknowledged problems encountered by CJHDevCo, partially caused by delays on the part of BCDA, which led to CJHDevCo's requests for deferment of payments.

The Court also noted that it was a joint committee comprised of officers of both CJHDevCo and BCDA that ruled to allow the deferment of payments.

The decision stated, "If there was misrepresentation as to the financial condition of CJHDevCo, the officers/directors of BCDA who are members of the committee might have been remiss, if not fell short, of their duty to determine the financial capacity or incapacity of CJHDevCo to pay its obligations."

The Court also noted Sobrepeña's transparency with BCDA. The decision emphasized, "There is no evidence that accused Sobrepeña concealed the corporate records and financial statements of CJHDevCo to BCDA. There is no evidence showing that accused Sobrepeña persuaded, if not insisted, BCDA to enter into the said contract. The very stipulations of the MOAs appears to be a product of negotiations, verification and careful, if not meticulous, evaluation ... The July 14, 2000 MOA was even approved by the Office of the Government Corporate Counsel and by the Office of the President."

"At the onset, we knew this was a harassment case," said CJHDevCo executive vice president and chief executive officer Alfredo R. Yñiguez. "The board was cleared of charges by the prosecutor in June so it was odd that a case was still filed against Mr. Sobrepeña. This decision only emphasizes that Mr. Sobrepeña and CJHDevCo have always been upfront and transparent in our dealings with BCDA."


Camp John Hay Development Corporation holds a 50-year lease agreement for the administration, operation and maintenance of the 247-hectare John Hay Special Economic zone for its eventual conversion into a multi-use tourism oriented forest reservation.

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