Mayor presses truce on John Hay lease dispute: BCDA saysCJHDevCo misleading Baguio court
>> Tuesday, February 7, 2012
By Aileen P. Refuerzo and Dexter See
BAGUIO CITY - The Bases Conversion and Development Authority accused the Sobrepena-led CJHDevco of allegedly misleading a local court into granting a temporary restraining order (TRO) and extending the same for another 17 days to the prejudice of the government and public interest, citing that it had no clear basis in securing the court order against a takeover of CJHDevCo’s leased properties in the John Hay Special Economic Zone because there was no attempt to actually take over the leased properties.
“Like all their past actions and statements, CJHDevCO has even misled the court, giving the impression that the firm is the victim, on the contrary, it is the government and the public who is suffering damage while CJHDevCo continues to benefit from John Hay without giving government its due, Arnel Paciano D. Casanova, BCDA president and chief executive officer, said after Judge MonalizaTabora of the Regional Trial court (RTC) Branch 7 extended the 3-day TRO to 17 days and set the hearing for the petition for the issuance of a writ of preliminary injunction on Feb. 6.
If the Sobrepena group had paid P3 billion debt, Casanova said that amount could have gone to improving John Hay, and regional development, particularly in Baguio, shall have been supported many times over.
“As far as the BCDA is concerned, there is no legal basis for a TRO. No takeover has taken place, and no attempt has been made, hence the court order comes a surprise and mystery to us,” he stressed.
Financial row developed between the two contending parties owing to CJHDevco’s continuing refusal to pay its financial obligations as stipulated in the developer’s lease contract with the BCDA to develop the former American rest and recreation center into a world-class multi-use tourism center to boost the growth of the local tourism industry.
“They’re afraid of their own ghost which they created trying to evade their huge obligation to the government,” Casanova added, pointing out that CJHDevCo’s grounds are speculative and born out of their own paranoia.
Without any advance notice to BCDA, the John Hay lessee unceremoniously kicked out four BCDA directors from the latter’s board of directors upon announcing that they rescinded the 2008 Restructuring Memorandum of Agreement (RMOA) earlier this month.
“They have no legal basis to unilaterally rescind the 2008 RMOA,” Casanova said, adding that they may “have shot themselves at the foot,” since there is no longer a working contract between BCDA and CJHDevCo.
A week after the rescission, CJHDevco officials have filed for arbitration and are claiming P14.4 billion in damages, desperately making it appear that they are the aggrieved parties.
Casanova questioned the “arithmetic” that was used in computing for CJHDevco’s P14.4 billion claim in damages, saying the numbers they presented are baseless and atrocious. “The numbers that cannot be disputed is their ballooning obligation to BCDA amounting to P3 billion and this is the continuing damage that the government is suffering”, Casanova stated.
The BCDA chief executive stated that the delinquent lessee is “grasping at straws” to evade meeting their ballooning debt obligation. “CJHDevco still owes government P3 billion and we will not allow them to escape their debt.”
“We are firm in our commitment to protect public interest in Camp John Hay,” Casanova said. BCDA has always taken the normal route in asking CJHDevco to pay its obligations. “It is CJHDevco which has been precipitate and unreasonable with its actions. What they are doing is grossly disadvantageous to government,” he added.
This, as the JHMC board of directors last week passed a resolution expressing full support to JHMC president and chief executive officer Jamie Eloise M. Agbayani and vice president and chief operations officer Mita Angela M. Dimalanta in managing the government-run firm.
The resolution was signed by Dir. Marissa O. Bondoc, JHMC corporate secretary.
Agbayani was a subject of a complaint reportedly filed by three JHMC employees with the Office of the Ombudsman.
A JHMC press statement said two of these employees have pending administrative charges and signed the complaint to pre-empt disciplinary actions against them.
Agbayani however is still awaiting word from the Ombudsman if indeed said complaint was filed.
She assured the JHMC directors that “she will disprove all these allegations at the proper time and forum”, and that she “will address this matter with transparency, professionalism and integrity.”
She also assured them that the operations of JHMC will remain unhampered.
This comes at a time when reforms are being instituted to improve the overall management of JHMC, so as to make it more responsive to development thrusts, in order to transform Camp John Hay into a top destination of choice and a haven for tourists and investors alike.
JHMC and BCDA have also been trying to collect from Camp John Hay Development Corp. unpaid rentals amounting to P3.024 billion as of the end of December.
In a statement, Agbayani said, “We at JHMC and BCDA are very much focused on the job at hand. We shall not be deterred from our efforts to get what is due to the government, and the people of Baguio”.
This , as Mayor Mauricio Domogan urged the BCDA and CJH DevCo to patch up their differences and reach an amicable settlement on the Camp John Hay lease payment despite their apparently worsening dispute.
“We are still praying that they will sit down and come up with an amicable solution for the benefit of all concerned,” the mayor said.
Domogan said the deadlock will further prolong the city’s wait for the payment of its uncollected share from the lease rental which could have been used to fund priority projects.
BCDA and CJHdevCo’s botched negotiations for the payment of the rentals placed at P3.024 billion resulted to the developer’s filing for the rescission of its Restructuring Memorandum of Agreement with BCDA signed in 2008 for BCDA’s alleged failure to deliver contractual obligations and demands.
The mayor said the CJhDevCo has filed a petition for arbitration before the courts to mediate the issues.
“As far as the BCDA is concerned, there is no legal basis for a TRO. No takeover has taken place, and no attempt has been made, hence the court order comes a surprise and mystery to us,” he stressed.
Financial row developed between the two contending parties owing to CJHDevco’s continuing refusal to pay its financial obligations as stipulated in the developer’s lease contract with the BCDA to develop the former American rest and recreation center into a world-class multi-use tourism center to boost the growth of the local tourism industry.
“They’re afraid of their own ghost which they created trying to evade their huge obligation to the government,” Casanova added, pointing out that CJHDevCo’s grounds are speculative and born out of their own paranoia.
Without any advance notice to BCDA, the John Hay lessee unceremoniously kicked out four BCDA directors from the latter’s board of directors upon announcing that they rescinded the 2008 Restructuring Memorandum of Agreement (RMOA) earlier this month.
“They have no legal basis to unilaterally rescind the 2008 RMOA,” Casanova said, adding that they may “have shot themselves at the foot,” since there is no longer a working contract between BCDA and CJHDevCo.
A week after the rescission, CJHDevco officials have filed for arbitration and are claiming P14.4 billion in damages, desperately making it appear that they are the aggrieved parties.
Casanova questioned the “arithmetic” that was used in computing for CJHDevco’s P14.4 billion claim in damages, saying the numbers they presented are baseless and atrocious. “The numbers that cannot be disputed is their ballooning obligation to BCDA amounting to P3 billion and this is the continuing damage that the government is suffering”, Casanova stated.
The BCDA chief executive stated that the delinquent lessee is “grasping at straws” to evade meeting their ballooning debt obligation. “CJHDevco still owes government P3 billion and we will not allow them to escape their debt.”
“We are firm in our commitment to protect public interest in Camp John Hay,” Casanova said. BCDA has always taken the normal route in asking CJHDevco to pay its obligations. “It is CJHDevco which has been precipitate and unreasonable with its actions. What they are doing is grossly disadvantageous to government,” he added.
This, as the JHMC board of directors last week passed a resolution expressing full support to JHMC president and chief executive officer Jamie Eloise M. Agbayani and vice president and chief operations officer Mita Angela M. Dimalanta in managing the government-run firm.
The resolution was signed by Dir. Marissa O. Bondoc, JHMC corporate secretary.
Agbayani was a subject of a complaint reportedly filed by three JHMC employees with the Office of the Ombudsman.
A JHMC press statement said two of these employees have pending administrative charges and signed the complaint to pre-empt disciplinary actions against them.
Agbayani however is still awaiting word from the Ombudsman if indeed said complaint was filed.
She assured the JHMC directors that “she will disprove all these allegations at the proper time and forum”, and that she “will address this matter with transparency, professionalism and integrity.”
She also assured them that the operations of JHMC will remain unhampered.
This comes at a time when reforms are being instituted to improve the overall management of JHMC, so as to make it more responsive to development thrusts, in order to transform Camp John Hay into a top destination of choice and a haven for tourists and investors alike.
JHMC and BCDA have also been trying to collect from Camp John Hay Development Corp. unpaid rentals amounting to P3.024 billion as of the end of December.
In a statement, Agbayani said, “We at JHMC and BCDA are very much focused on the job at hand. We shall not be deterred from our efforts to get what is due to the government, and the people of Baguio”.
This , as Mayor Mauricio Domogan urged the BCDA and CJH DevCo to patch up their differences and reach an amicable settlement on the Camp John Hay lease payment despite their apparently worsening dispute.
“We are still praying that they will sit down and come up with an amicable solution for the benefit of all concerned,” the mayor said.
Domogan said the deadlock will further prolong the city’s wait for the payment of its uncollected share from the lease rental which could have been used to fund priority projects.
BCDA and CJHdevCo’s botched negotiations for the payment of the rentals placed at P3.024 billion resulted to the developer’s filing for the rescission of its Restructuring Memorandum of Agreement with BCDA signed in 2008 for BCDA’s alleged failure to deliver contractual obligations and demands.
The mayor said the CJhDevCo has filed a petition for arbitration before the courts to mediate the issues.
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