Convention center controversy: Camp John Hay, BCDA issued demand: Honor deal or face suit

BY ISAGANI S. LIPORADA

BAGUIO CITY – The city government sent “formal demand” dated Sept. 26 to the Bases Conversion and Development Authority and its development arm, John Hay Management Corporation, asking both entities to honor the Jan. 23, 2004 BCC buy deal or it would take legal action.

The Bases Conversion Development Authority has virtually filed every local legislation and payment demands under miscellaneous, said local officials.
But this time, the city is bent on making positive steps to make “filing under miscellaneous” less than an option for BCDA.

“The city government is doing everything to protect its rights over the Baguio Convention Center,” city legal officer Melchor Carlos Rabanes said. “But we are definitely ready for legal battle in case diplomacy fails.”

The demand letter signed by mayor Reinaldo Bautista, Jr. was addressed to BCDA president and chief operating officer Narciso Abaya and JHMC chair Ma. Cristina Corona.

Earlier, upon execution of the 2004 agreement, BCDA paid BCC erstwhile owner Government Service Insurance System P50-million as partial for the P250-million dilapidated convention center.

The balance of P200-million places the city virtually up to neck level as the same earns 12-pecent annual interest on the annual “supposedly” diminishing balance commencing Nov. 5, 2005.

“However, BCDA failed to deliver annual amortizations despite billings made by GSIS,” Bautista wrote. “While the city government has been taking strides to save the venture from collapsing, it is lamentable that BCDA is not taking any positive steps to make good its commitment embodied in the agreement.”

Bautista likewise warned of a court suit saying the letter is a “prelude to the taking of appropriate legal action in the event BCDA and JHMC would not take any favorable step to avert the threat of takeover by GSIS over BCC.”

Bautista earlier lamented protracted hostilities between the Senate and the House of Representatives over “conflicting versions” of Special Economic Zones’ tax perk measures, hampering city collections of its shares from operations of the Camp John Hay mega-tourism estate.

“Our efforts to secure title over BCC are being stymied,” Bautista said adding, “the stalemate has placed other issues concerning CJH in abeyance and it’s putting the city in the losing end.”
Meanwhile, Rabanes said that with the two houses of congress finally meeting eye-to-eye, BCDA’s scapegoat could now be set aside.

“As soon as the mayor’s back, we are definitely pushing for final demand to show BCDA and JHMC we mean business,” he added.

This, while BCDA and JHMC still plays unwilling debtors to the dappled BCC purchase deal.